12/13/2014 – Reading the Fine Print on Pension Advance Agreements (The New York Times)

Dec 15, 2014 Comments Off by

Pension advance agreements — also known as annuity utilization contracts — have been the subject of many articles and of litigation in several states. In 2005 a class-action lawsuit was filed by the National Consumer Law Center against Structured Investments Company L.L.C. (Retired Military Financial Services was doing business under that name at the time.A judgment was handed up in 2011, citing “illegal assignments of military pension” and awarding former service members $2.9 million. Agencies like the Consumer Financial Protection Bureau, Federal Trade Commission and Government Accountability Office have issued warnings about the services. The services also have been the topic of hearings in Congress. Yet no action has been taken on the federal level to regulate the practice.

An investigation this year by the G.A.O. found “questionable elements of pension advance transactions related to the disclosure of rates or fees, and certain unfavorable terms of agreements,” according to its report.

Read the full article at The New York Times.

Financial Landing 2014

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