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ASSURE Act Would Protect Federal Retirees From Scams

FOR IMMEDIATE RELEASE Contact: Jessica Klement
October 28, 2015 703-838-7760
  jklement@narfe.org

Alexandria, VA – The National Active and Retired Federal Employees Association (NARFE) expresses support for the Annuity Safety and Security Under Reasonable Enforcement (ASSURE) Act, introduced today by Rep. Matthew A. Cartwright, D-PA, along with Rep. Gerald E. Connolly, D-VA, and 24 other cosponsors.

“The legislation would help ensure the retirement benefits of federal workers are secure from financial scams that could rob retirees of their annuities through fraudulent sales practices,” said Richard G. Thissen, president of NARFE. “NARFE applauds Congressman Cartwright’s leadership on the issue, which combines his support for public service with his private-sector experience as an attorney.”

The bill targets “pension advance” schemes that offer annuitants immediate cash and, in exchange, require them to sign over all or part of their future monthly pension checks to a separate bank account managed by the lending company.

The ASSURE Act would expand on previous law to require appropriate disclosures regarding these transactions and also would cap interest rates on these “advances.” Importantly, it creates a private right of action to allow individuals to enforce these laws in court.

“While current federal law already prohibits federal and military retirees from assigning their pensions to a third party, many companies have resorted to skirting state and federal laws by requiring the retiree to deposit his or her pension in a separate bank account controlled by the firm,” Rep. Cartwright said. “Moreover, firms refer to the product they sell as a ‘pension advance’ rather than a loan. In reality, these ‘advances’ require borrowers to sign over all or part of their monthly pension checks and carry interest rates that are often many times higher than those on credit cards.”

NARFE urges Congress to take action on this important piece of legislation protecting our nation’s seniors. 

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The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the interests of nearly five million current and future federal annuitants, spouses and survivors.