I thank the chairman for yielding. Mr. Speaker, I rise today on behalf of military families and the surviving family members of our men and women who were killed in battle as they fought to defend our freedom. H.R. 5993 will help ensure…
I thank the chairman for yielding.
Mr. Speaker, I rise today on behalf of military families and the surviving family members of our men and women who were killed in battle as they fought to defend our freedom.
H.R. 5993 will help ensure that the families of our soldiers killed in action fully understand the benefits that they are entitled to, and it will help them comprehend the financial products they are using.
As many of our colleagues know, Mr. Speaker, many of our soldiers participate in the Servicemembers' Group Life Insurance program, or the SGLI, as they fight overseas. The SGLI is intended to provide our servicemembers and their families with low-cost life insurance under circumstances in which most insurance companies would not take the risk of providing life insurance coverage. In the tragic circumstance that a soldier is killed in action, the surviving family member is then entitled to a policy that helps ease some of the financial burdens left behind.
Currently, the beneficiary may receive the payment in the form of what is called a ``Retained Asset Account,'' which is administered by the insurance company. These financial products are similar to a checking account in that they allow the beneficiary the ability to draw down the funds in increments until exhausted.
Unfortunately, there have been recent media reports highlighting that some beneficiaries did not fully understand that their money was being held in these accounts. I know I was outraged, as many of my colleagues were, to hear about the lack of disclosure and transparency, which is what we are fixing today--addressing disclosure, transparency and accountability so that our families know exactly what they have coming to them. They didn't understand what these accounts were, what was happening to their money when it was sitting in these accounts and, three, that these accounts were not FDIC-insured. This left the beneficiaries feeling as though they were being taken advantage of and that they were part of a financial scheme buried in the fine print of their policies.
The surviving family members of our fallen soldiers should never feel that way. It is our responsibility to make sure that they don't ever feel that way again. We need to make sure that 100 percent of these survivors feel protected and safe.
My bill is endorsed by the American Legion, the National Military Family Association, the Military Officers Association of America, the Gold Star Wives of America, and on and on and on. I have letters from all of them that I would like to include in the Record. However, I want to read an excerpt from the National Military Family Association.
It reads: ``Dear Representative Halvorson, the National Military Family Association has long been an advocate for improving the quality of life of our military family members who have sacrificed greatly in support of our Nation. We are writing today in support of H.R. 5993, which seeks to ensure that insurance companies provide appropriate information and financial counseling to survivors who receive payments from the SGLI groups.
``H.R. 5993, the Securing America's Veterans Insurance Needs and Goals, which is called the SAVINGS Act, which you have introduced, would mandate that the Secretary of Veterans Affairs require insurance companies providing coverage through these programs to only provide counseling and disclosure information to family members of fallen soldiers.
``The National Military Family Association is the leading nonprofit organization committed to improving the lives of military families. Our over 40 years of service and accomplishments have made us a trusted resource for families and the Nation's leaders. As the only nonprofit organization that represents the families of the Army, Navy, Air Force, Marine Corps, Coast Guard, the Commissioned Corps of the Public Health Service, and the National Oceanic and Atmospheric Administration, the association protects benefits vital to all families, including those of the deployed, wounded, and fallen.''
So as you can see, this is something that is badly needed so that the families know exactly what they have available to them so that they can make the best decision with those benefits. It focuses on making Congress also better aware of what these SGLI programs are about.
Again, let me be perfectly clear. Today we are strictly focused on disclosure, transparency, financial counseling, and oversight. And make no mistake, we need to do more work on improving the SGLI program. I think we are all committed to doing that, and that is being done through investigations, through the VA, and through other committees of jurisdiction, but we can't wait. Our military families can't wait. The families of our fallen soldiers cannot wait.
Today, we have the opportunity to move forward on an important protection for our military families, and this
is an urgent issue, and it absolutely needs to be our main focus. It is our responsibility to go above and beyond the call of duty. They sure have, and we need to protect these widows and orphans. This is one of the most important and solemn duties that we have as Members of Congress. H.R. 5993 will help us fulfill that responsibility in a reasonable and effective manner.
Before I close, I would like to thank Chairman Filner, Chairman Hall, as well as all of our committee staff who have worked so hard to move this legislation along, and we have all worked hard on this bill.
I urge my colleagues to stand with me--protect the families of our fallen soldiers--by voting ``yes'' on H.R. 5993.
Gold Star Wives
of America, Inc.,
September 26, 2010.
Chairman Bob Filner,
House Committee on Veterans' Affairs, Cannon House Office
Building,
Washington, DC.
In light of recent news that insurance companies could
potentially use group life insurance policies to profit from
accounts it maintains for the families of fallen soldiers,
Gold Star Wives of America, Inc. supports H.R. 5993. H.R.
5993 would ensure that insurance companies authorized by VA
to administer SGLI accounts are fully open and honest about
its practices for these policies on which so many
servicemembers rely to ensure financial security for their
families.
H.R. 5993, the Securing America's Veterans Insurance Needs
and Goals (SAVINGS) Act of 2010, introduced by Representative
Debbie Halvorson, would mandate that the Secretary of
Veterans Affairs require insurance companies that provide
coverage through the Sevicemembers' Group Life Insurance
(SGLI) program, to offer financial counseling and improved
disclosure information to family members and survivors of
fallen soldiers. It would also require an annual report to
Congress by VA to ensure that insurance companies are being
responsive to military families and survivors and that the
Office of Survivors Assistance will be a greater resource in
this effort.
It is critical that the options and information available
for survivors offered under the SGLI program involve more
disclosure and greater transparency. H.R. 5993 would do that
by guaranteeing that survivors of our fallen heroes have
access to oral and written financial counseling. This greater
disclosure requirements and counseling would better help
survivors to understand their options so that they can make
sound decisions during a stressful and sorrowful time.
Gold Star Wives of America, Inc. supports H.R. 5993 so that
we can do everything in our power to protect the families and
survivors of our fallen soldiers. Their loved ones have
answered the call and their survivors deserve these
protections.
Respectfully,
Martha M. Didamo,
Board Chair, Gold Star Wives of America, Inc.
