,,ii #aagth ,,congress #ast ,session ,s4 #biie ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #ai1 #bjba,mrs4 ,murray introduced the following bill2 which was read twice and referred to the ,committee on ,armed ,services ,a ,,bill ,to improve the provision of financial literacy training and information relating to the ,blended ,retirement ,system to members of the ,armed ,forces4 #a4 ,short title ,this ,act may be cited as the ,re-open ,enrollment for ,servicemembers to ,opt-in to ,updated ,retirement ,choice for ,enduring ,security ,act of #bjba or the ,,resources ,act of #bjba4 #b4 ,improvements to financial literacy training2 provision of information relating to the ,blended ,retirement ,system 7a7 ,improvements to financial literacy training 7#a7 ,in general ,subsection 7a7 of section #iib of title #aj1 ,united ,states ,code1 is amended-- 7,a7 in paragraph 7#b77;,c71 by striking grade ,e-#d and inserting grade ,e-#f2 7,b7 by adding at the end the following new paragraph3 7#e7 ,in carrying out the program to provide training under this subsection1 the ,secretary concerned shall-- 7,a7 require the development of a standard curriculum across all military departments for such training that-- 7i7 focuses on ensuring that members of the armed forces who receive such training develop proficiency in financial literacy rather than focusing on completion of training modules2 7ii7 is based on best practices in the financial services industry1 such as the use of a social learning approach and the incorporation of elements of behavioral economics or gamification2 and 7iii7 is designed to address the needs of members and their families2 7,b7 ensure that such training-- 7i7 is conducted by a financial services counselor who is qualified as described in paragraph 7#c7 of subsection 7b7 or by other means as described in paragraph 7#b77;,a77ii7 of that subsection2 7ii7 is provided1 to the extent practicable-- 7,i7 in a class held in person with fewer than #ej attendees2 or 7,,ii7 one-on-one between the member and a financial services counselor or a qualified representative described in subclause 7,,iii7 or 7,,iv7 of subsection 7b77#b77;,a77ii72 and 7iii7 is provided using computer-based methods only if methods described in clause 7ii7 are impractical or unavailable2 7,c7 ensure that-- 7i7 an in-person class described in subparagraph 7,b77i77,i7 is available to the spouse of a member2 and 7ii7 if a spouse of a member is unable to attend such a class in person-- 7,i7 training is available to the spouse through ,military ,one,source2 and 7,,ii7 the member is informed during the in-person training of the member under subparagraph 7,b77i7 with respect to how the member's spouse can access the training2 7,d7 ensure that such training1 and all documents and materials provided in relation to such training1 are presented or written in manner that the ,secretary determines can be understood by the average enlisted member4 4 7#b7 ,qualified representatives for counseling for members and spouses ,subsection 7b77#b77;,a77ii7 of such section is amended by adding at the end the following3 7,,iv7 ,through qualified representatives of banks or credit unions operating on military installations pursuant to an operating agreement with the ,department of ,defense or a military department4 4 7#c7 ,provision of retirement information ,such section is further amended-- 7,a7 by redesignating subsections 7d7 and 7e7 as subsections 7e7 and 7g71 respectively2 and 7,b7 by inserting after subsection 7c7 the following new subsection 7d73 7d7 ,provision of retirement information ,in each training under subsection 7a7 and in each meeting to provide counseling under subsection 7b71 a member of the armed forces shall be provided with-- 7#a7 all forms relating to retirement that are relevant to the member1 including with respect to the ,thrift ,savings ,plan2 7#b7 information with respect to how to find additional information2 and 7#c7 contact information for counselors provided through-- 7,a7 the ,personal ,financial ,counselor program1 the ,personal ,financial ,management program1 or ,military ,one,source2 or 7,b7 nonprofit organizations or agencies that have in effect agreements with the ,department of ,defense to provide financial services counseling4 4 7#d7 ,advisory ,council on ,financial ,readiness ,such section is further amended by inserting after subsection 7e71 as redesignated by paragraph 7#c77;,a71 the following new subsection3 7f7 ,advisory ,council on ,financial ,readiness 7#a7 ,establishment ,there is established an ,advisory ,council on ,financial ,readiness 7in this section referred to as the ,council74 7#b7 ,membership 7,a7 ,in general ,the ,council shall consist of #ab members appointed by the ,secretary of ,defense1 as follows3 7i7 ,three shall be representatives of military support organizations4 7ii7 ,three shall be representatives of veterans service organizations4 7iii7 ,three shall be representatives of private1 nonprofit organizations with a vested interest in education and communication of financial education and financial services4 7iv7 ,three shall be representatives of governmental entities with a vested interest in education and communication of financial education and financial services4 7,b7 ,qualifications ,the ,secretary shall appoint members to the ,council from among individuals qualified to appraise military compensation1 military retirement1 and financial literacy training4 7,c7 ,terms ,members of the ,council shall serve for terms of three years1 except that1 of the members first appointed-- 7i7 four shall be appointed for terms of one year2 7ii7 four shall be appointed for terms of two years2 and 7iii7 four shall be appointed for terms of three years4 7,d7 ,reappointment ,a member of the ,council may be reappointed for additional terms4 7,e7 ,vacancies ,any member appointed to fill a vacancy occurring before the expiration of the term of office for which such member's predecessor was appointed shall be appointed only for the remainder of such term4 7#c7 ,duties and functions ,the ,council shall-- 7,a7 advise the ,secretary with respect to matters relating to the financial literacy and financial readiness of members of the armed forces2 and 7,b7 submit to the ,secretary recommendations with respect to those matters4 7#d7 ,meetings 7,a7 ,in general ,subject to subparagraph 7,b71 the ,council shall meet not less frequently than twice each year and at such other times as the ,secretary requests4 7,b7 ,during election period for ,blended ,retirement ,system ,during the period beginning on the date of the enactment of the ,re-open ,enrollment for ,servicemembers to ,opt-in to ,updated ,retirement ,choice for ,enduring ,security ,act of #bjba and ending at the end of the period provided for under section #adji7;b77#d7 and #abgci7;f7 to elect to be enrolled in the ,blended ,retirement ,system1 the ,council shall meet not less frequently than every #ij days4 7,c7 ,quorum ,a majority of members shall constitute a quorum and action shall be taken only by a majority vote of the members present and voting4 7#e7 ,support services ,the ,secretary-- 7,a7 shall provide to the ,council an executive secretary and such secretarial1 clerical1 and other support services as the ,council considers necessary to carry out the duties of the ,council2 and 7,b7 may request that other ,federal agencies provide statistical data1 reports1 and other information that is reasonably accessible to assist the ,council in the performance of the duties of the ,council4 7#f7 ,compensation ,while away from their homes or regular places of business in the performance of services for the ,council1 members of the ,council shall be allowed travel expenses1 including per diem in lieu of subsistence1 in the same manner as persons employed intermittently in the ,government service are allowed expenses under section #egjc of title #e4 7#g7 ,annual report ,not less frequently than annually1 the ,secretary shall submit to ,congress a report that-- 7,a7 describes each recommendation received from the ,council during the preceding year2 and 7,b7 includes a statement1 with respect to each such recommendation1 of whether the ,secretary has implemented the recommendation and1 if not1 a description of why the ,secretary has not implemented the recommendation4 7#h7 ,termination ,section #ad7;a7 of the ,federal ,advisory ,committee ,act 7#e ,u4,s4,c4 ,app47 7relating to termination7 shall not apply to the ,council4 7#i7 ,definitions ,in this subsection3 7,a7 ,military support organization ,the term military support organization means an organization that provides support to members of the armed forces and their families with respect to education1 finances1 health care1 employment1 and overall well-being4 7,b7 ,veterans service organization ,the term veterans service organization means any organization recognized by the ,secretary for the representation of veterans under section #eijb of title #ch4 4 7#e7 ,report on effectiveness of financial services counseling ,not later than #c years after the date of the enactment of this ,act1 the ,secretary of ,defense shall submit to the congressional defense committees 7as defined in section #aja of title #aj1 ,united ,states ,code7 a report on financial literacy training and financial services counseling provided under section #iib of title #aj1 ,united ,states ,code1 as amended by this subsection1 that assesses-- 7,a7 the effectiveness of such training and counseling1 which shall be determined using actual localized data similar to the ,unit ,risk ,inventory ,survey of the ,army2 and 7,b7 whether additional training or counseling is necessary for enlisted members of the ,armed ,forces or for officers4 7b7 ,modifications to lump sum payments of certain retired pay 7#a7 ,spousal consent to lump sum payment ,subsection 7b7 of section #adae of title #aj1 ,united ,states ,code1 is amended by adding at the end the following3 7#g7 ,spousal consent for election of lump sum payment ,an eligible person who is married may not elect to receive a lump sum payment under this subsection without the concurrence of the person's spouse1 unless the eligible person establishes to the satisfaction of the ,secretary concerned-- 7,a7 that the spouse's whereabouts cannot be determined2 or 7,b7 that1 due to exceptional circumstances1 requiring the person to seek the spouse's consent would otherwise be inappropriate4 4 7#b7 ,disclosures relating to offer of lump sum payment ,such section is further amended-- 7,a7 by redesignating subsection 7e7 as subsection 7g72 and 7,b7 by inserting after subsection 7d7 the following new subsections3 7e7 ,disclosures relating to offer of lump sum payment 7#a7 ,in general ,not later than #ij days before offering an eligible person a lump sum payment under this section1 the ,secretary of ,defense shall provide a notice to the person1 and the person's spouse1 if married1 that includes the following3 7,a7 ,a description of the available retirement benefit options1 including-- 7i7 the monthly covered retired pay that the person would receive after the person attains retirement age if the person is not already receiving such pay2 7ii7 the monthly covered retired pay that the person would receive if payments begin immediately2 and 7iii7 the amount of the lump sum payment the person would receive if the person elects to receive the lump sum payment4 7,b7 ,an explanation of how the amount of the lump sum payment was calculated1 including the interest rate and mortality assumptions used in the calculation1 and whether any additional benefits were included in the amount4 7,c7 ,a description of how the option to take the lump sum payment compares to the value of the covered retired pay the person would receive if the person elected not to take the lump sum payment4 7,d7 ,a statement of whether1 by purchasing a retail annuity using the lump sum payment1 it would be possible to replicate the stream of payments the person would receive if the person elected not to take the lump sum payment4 7,e7 ,a description of the potential implications of accepting the lump sum payment1 including possible benefits and reductions in such benefits1 investment risks1 longevity risks1 and loss of protection from creditors4 7,f7 ,a description of the tax implications of accepting the lump sum payment1 including rollover options1 early distribution penalties1 and associated tax liabilities4 7,g7 ,instructions for how to accept or reject the offer of the lump sum payment and the date by which the person is required to accept or reject the offer4 7,h7 ,contact information for the person to obtain more information or ask questions about the option to accept the lump sum payment1 including the opportunity for a one-on-one meeting with a counselor provided through the ,personal ,financial ,counselor program or the ,personal ,financial ,management program4 7,i7 ,a statement that-- 7i7 financial advisers 7other than financial services counselors provided through the ,personal ,financial ,counselor program or the ,personal ,financial ,management program7 may not be required to act in the best interests of the person or the person's beneficiaries with respect to determining whether to take the lump sum payment2 and 7ii7 if the person or a beneficiary of the person is seeking financial advice from a financial adviser not affiliated with the armed forces1 the person or beneficiary should obtain written confirmation that the adviser is acting as a fiduciary to the person or beneficiary4 7,j7 ,such other information as the ,secretary considers to be necessary or relevant4 7#b7 ,form ,the ,secretary shall ensure that any notice provided to an eligible person under paragraph 7#a7-- 7,a7 is written in manner that the ,secretary determines can be understood by the average enlisted member of the armed forces2 and 7,b7 is presented in a manner that is not biased for or against acceptance of the offer of the lump sum payment4 7f7 ,report required ,not later than one year after the date of the enactment of the ,re-open ,enrollment for ,servicemembers to ,opt-in to ,updated ,retirement ,choice for ,enduring ,security ,act of #bjba1 and annually thereafter1 the ,secretary shall submit to the congressional defense committees report that-- 7#a7 sets forth the number of members of the armed forces who take a lump sum payment under this section2 and 7#b7 describes the details of the arrangements relating to taking such a payment1 including-- 7,a7 whether members have taken a lump sum payment in exchange for reduced future benefits2 and 7,b7 information relating to the members who have taken a lump sum payment1 such as the age and rank of such members4 4 7c7 ,additional election period for ,blended ,retirement ,system 7#a7 ,additional election period for members of uniformed services ,section #adji7;b77#d7 of title #aj1 ,united ,states ,code1 is amended-- 7,a7 by striking subparagraph 7,a7 and inserting the following new subparagraph 7,a73 7,a7 ,reduced multiplier for full ,,tsp members 7i7 ,in general ,notwithstanding paragraphs 7#a71 7#b71 and 7#c71 in the case of a member described in clause 7ii7 7referred to as a full ,,tsp member7-- 7,i7 paragraph 7#a77;,a7 shall be applied by substituting #b for #b2 7,,ii7 clause 7i7 of paragraph 7#c77;,b7 shall be applied by substituting #fj percent for #ge percent2 and 7,,iii7 clause 7ii77,i7 of such paragraph shall be applied by substituting #b for #b4 7ii7 ,full ,,tsp members ,a member described in this clause is-- 7,i7 a member who first becomes a member of the uniformed services on or after ,january #a1 #bjah2 7,,ii7 a member described in subparagraph 7,b7 who makes the election described in that subparagraph2 or 7,,iii7 a member who made the election described in subparagraph 7,b71 as in effect on the day before the date of the enactment of the ,re-open ,enrollment for ,servicemembers to ,opt-in to ,updated ,retirement ,choice for ,enduring ,security ,act of #bjba4 2 7,b7 by striking subparagraph 7,b7 and inserting the following new subparagraph 7,b73 7,b7 ,election to participate in modernized retirement system ,pursuant to subparagraph 7,c71 a member of a uniformed service serving on ,december #ca1 #bjag1 who has served in the uniformed services for fewer than #ab years as of the date selected by the ,secretary of ,defense under subparagraph 7,c77i77,i71 may elect1 in exchange for the reduced multipliers described in subparagraph 7,a7 for purposes of calculating the retired pay of the member1 to receive ,thrift ,savings ,plan contributions pursuant to section #hddj;e7e7 of title #e4 2 7,c7 in subparagraph 7,c77i71 by striking the period and all that follows and inserting that following3 the period that-- 7,i7 begins on a date selected by the ,secretary of ,defense1 which-- 7aa7 may be not earlier than ,january #a1 #bjbc1 and not later than ,january #a1 #bjbd2 and 7bb7 shall be the same as the date selected under section #abgci7;f77#b77;,b77i77,i77aa72 and 7,,ii7 ends on the date that is #ahj days after the date selected under subclause 7,i74 2 7,d7 by redesignating subparagraph 7,e7 as subparagraph 7,f72 and 7,e7 by inserting after subparagraph 7,d7 the following new subparagraph 7,e73 7,e7 ,special rules relating to the second election period ,the ,secretary concerned shall-- 7i7 to the extent practicable1 provide to each member described in subparagraph 7,b7 7and the member's spouse1 if married7-- 7,i7 a class1 to be held in person and with fewer than #ej attendees1 on the ,blended ,retirement ,system and the differences between that system and the predecessor retirement system2 and 7,,ii7 financial counseling described in section #iib7;b7 focused on the suitability of the ,blended ,retirement ,system in the context of the member's personal circumstances2 7ii7 require each such member to make the election described in subparagraph 7,b7 or decline to make that election2 7iii7 document the decision of the member under clause 7ii7 in a statement that describes the features of the ,blended ,retirement ,system and of the predecessor retirement system2 and 7iv7 have the member 7and the member's spouse1 if married7 sign the statement described in clause 7iii7 to acknowledge understanding of those features4 4 7#b7 ,additional election period for members of reserve components ,section #abgci7;f7 of title #aj1 ,united ,states ,code1 is amended-- 7,a7 by striking paragraph 7#a7 and inserting the following new paragraph 7#a73 7#a7 ,reduced multiplier for full ,,tsp members 7,a7 ,in general ,notwithstanding subsection 7a7 or 7c71 in the case of a person described in subparagraph 7,b7 7referred to as a full ,,tsp member7-- 7i7 subsection 7a77#b7 shall be applied by substituting #b percent for #b percent2 7ii7 subparagraph 7,a7 of subsection 7c77#b7 shall be applied by substituting #fj percent for #ge percent2 and 7iii7 subparagraph 7,b77ii7 of such subsection shall be applied by substituting #b percent for #b percent4 7,b7 ,full ,,tsp members ,a person described in this subparagraph is-- 7i7 a person who first performs reserve component service on or after ,january #a1 #bjah1 after not having performed regular or reserve component service on or before that date2 7ii7 a person described in paragraph 7#b77;,a7 who makes the election described in that paragraph2 or 7iii7 a person who made the election described in paragraph 7#b77;,a71 as in effect on the day before the date of the enactment of the ,re-open ,enrollment for ,servicemembers to ,opt-in to ,updated ,retirement ,choice for ,enduring ,security ,act of #bjba4 2 7,b7 in paragraph 7#b7-- 7i7 by striking subparagraph 7,a7 and inserting the following new subparagraph 7,a73 7,a7 ,in general ,pursuant to subparagraph 7,b71 a person performing reserve component service on ,december #ca1 #bjag1 who has performed fewer than #ab years of service as of the date selected by the ,secretary of ,defense under subparagraph 7,b77i77,i7 7as computed in accordance with section #abgcc of this title71 may elect1 in exchange for the reduced multipliers described in paragraph 7#a7 for purposes of calculating the retired pay of the person1 to receive ,thrift ,savings ,plan contributions pursuant to section #hddj;e7e7 of title #e4 2 7ii7 in subparagraph 7,b77i71 by striking the period and all that follows and inserting that following3 the period that-- 7,i7 begins on a date selected by the ,secretary of ,defense1 which-- 7aa7 may be not earlier than ,january #a1 #bjbc1 and not later than ,january #a1 #bjbd2 and 7bb7 shall be the same as the date selected under section #adji7;b77#d77;,c77i77,i77aa72 and 7,,ii7 ends on the date that is #ahj days after the date selected under subclause 7,i74 2 7,c7 by redesignating paragraph 7#c7 as paragraph 7#d72 and 7,d7 by inserting after paragraph 7#b7 the following new paragraph 7#c73 7#c7 ,special rules relating second election period ,the ,secretary concerned shall-- 7,a7 to the extent practicable1 provide to each person described in paragraph 7#b77;,a7 7and the person's spouse1 if married7-- 7i7 a class1 to be held in person and with fewer than #ej attendees1 on the ,blended ,retirement ,system and the differences between that system and the predecessor retirement system2 and 7ii7 financial counseling described in section #iib7;b7 focused on the suitability of the ,blended ,retirement ,system in the context of the person's personal circumstances2 7,b7 require each such person to make the election described in paragraph 7#b77;,a7 or decline to make that election2 7,c7 document the decision of the member under subparagraph 7,b7 in a statement that describes the features of the ,blended ,retirement ,system and of the predecessor retirement system2 and 7,d7 have the member 7and the member's spouse1 if married7 sign the statement described in subparagraph 7,c7 to acknowledge understanding of those features4 4 7#c7 ,conforming amendment ,section #hddj;e7e77#a7 of title #e1 ,united ,states ,code1 is amended-- 7,a7 in subparagraph 7,a71 by striking 2 or and inserting a semicolon2 7,b7 in subparagraph 7,b7-- 7i7 in clause 7ii71 by striking has and inserting had2 7ii7 by striking clause 7iii7 and inserting the following new clause 7iii73 7iii7 made the election described in section #adji7;b77#d77;,b7 or #abgbi7;f77#b7 of title #aj1 as in effect before the date of the enactment of the ,re-open ,enrollment for ,servicemembers to ,opt-in to ,updated ,retirement ,choice for ,enduring ,security ,act of #bjba1 to receive ,thrift ,savings ,plan contributions under this subsection in exchange for the reduced multipliers described in section #adji7;b77#d77;,a7 or #abgci7;f77#a7 of title #aj1 as applicable and so in effect1 for purposes of calculating the retired pay of the member2 or 2 and 7,c7 by adding at the end the following3 7,c7 who-- 7i7 first entered a uniformed service before ,january #a1 #bjah2 7ii7 has completed fewer than #ab years of service in the uniformed services as of the date selected by the ,secretary of ,defense under sections #adji7;b77#d77;,c77i77,i77aa7 and #abgci7;f77#b77;,b77i77,i77aa72 and 7iii7 makes the election described in section #adji7;b77#d77;,b7 or #abgbi7;f77#b7 of title #aj to receive ,thrift ,savings ,plan contributions under this subsection in exchange for the reduced multipliers described in section #adji7;b77#d77;,a7 or #abgci7;f77#a7 of title #aj1 as applicable1 for purposes of calculating the retired pay of the member4 4 7#d7 ,training of certain officers ,the ,secretary of ,defense shall ensure that each member of the armed forces in pay grade ,e-#i or below or in pay grade ,o-#f or below receives training with respect to the features of the ,blended ,retirement ,system1 without regard to whether the member is eligible to make an election between the ,blended ,retirement ,system and the predecessor retirement system1 so that member is able to answer the questions of other members if necessary4 7d7 ,report on improved access to ,thrift ,savings ,plan ,not later than #ah months after the date of the enactment of this ,act1 the ,federal ,retirement ,thrift ,investment ,board shall submit to ,congress a plan for improving the access of members of the ,armed ,forces to information about the ,thrift ,savings ,plan that-- 7#a7 takes into account the time likely to pass between the mailing of account information to a member of the ,armed ,forces and the time the member is likely to receive the information2 and 7#b7 makes recommendations for statutory changes necessary to improve such access4 7e7 ,regulations ,the ,secretary of ,defense may prescribe such regulations as are necessary to carry out the amendments made by this section4