Statements on Introduced Bills and Joint Resolutions

Floor Speech

BREAK IN TRANSCRIPT

Mr. CARDIN. Mr. President, I rise today to introduce the ``Securing America's Veterans Insurance Needs and Goals Act of 2010 or the SAVINGS Act of 2010. This is similar to a bill introduced in the House of Representatives by Congresswoman Deborah Halvorson and House Committee on Veterans' Affairs Chair Bob Filner.

This bill ensures that beneficiaries of the Servicemembers' Group Life Insurance, SGLI, program receive financial counseling and full disclosure information regarding life insurance payments. Active duty members of the Armed Forces will be given more information as they decide on disbursement options for their beneficiaries. The SAVINGS Act offers specific protections and alternatives to life insurance policy beneficiaries. This bill requires an explanation of how the retained-asset accounts differ from traditional checking accounts and leaves flexibility for the Secretary of the Department of Veterans Affairs to add more disclosure guidelines as he sees fit.

I present this bill to improve the process for our servicemembers and their families. My concern is that what has become a common industry practice, may not be an appropriate solution for every family. The SAVINGS Act addresses this challenge by requiring a greater level of disclosure and financial counseling to beneficiaries. This bill helps families make sound financial decisions during a most difficult time.

It will assist Marylanders and other Americans in difficult times. Last week National Public Radio profiled my constituent Cindy Lohman, of Great Mills, MD. Ms. Lohman lost her son Ryan when he was killed in a bombing in Afghanistan in August 2008. She had no idea that the package sent to her from the life insurance company would lead to more difficulty, during an already unbearable time.

While a mother grieved, Prudential the company that administers the SGLI policies on behalf of the Veterans Affairs Secretary began to process her survivor's benefits. Understandably too distraught to take immediate action, Ms. Lohman put away the package for 6 months. After looking over the many pages of printed forms and seeing what appeared to be a checkbook, Ms. Lohman assumed the money was in a checking account.

There were many details in that packet from the insurance company disclaimers and other specifics about the account. It turns out that this was not a standard, FDIC-insured account, but a retained-asset account managed by the insurance company.

As we send soldiers to fight overseas, our support for our servicemembers and their families must remain steadfast and strong. I am proud to serve in this Congress that has worked to honor our commitment to our nation's veterans and to the families of our fallen heroes. This is a good bill because it shows our commitment to do what is in the best interest of the families of the noble men and women who serve in uniform.

BREAK IN TRANSCRIPT

Source