SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Personnel Financial 
Services Education Act of 2005''.

SEC. 2. CONSUMER EDUCATION FOR MEMBERS OF THE ARMED FORCES AND THEIR 
              SPOUSES ON INSURANCE AND OTHER FINANCIAL SERVICES.

    (a) Education and Counseling Requirements.--
            (1) In general.--Chapter 50 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 992. Consumer education: financial services
    ``(a) Requirement for Consumer Education Program for Members.--(1) 
The Secretary concerned shall carry out a program to provide 
comprehensive education to members of the armed forces under the 
jurisdiction of the Secretary on--
            ``(A) financial services that are available under law to 
        members;
            ``(B) financial services that are routinely offered by 
        private sector sources to members;
            ``(C) practices relating to the marketing of private sector 
        financial services to members;
            ``(D) such other matters relating to financial services 
        available to members, and the marketing of financial services 
        to members, as the Secretary considers appropriate; and
            ``(E) such other financial practices as the Secretary 
        considers appropriate.
    ``(2) Training under this subsection shall be provided to members 
as--
            ``(A) a component of the members' initial entry training;
            ``(B) a component of each level of the members' 
        professional development training that is required for 
        promotion; and
            ``(C) a component of periodically recurring required 
        training that is provided for the members at military 
        installations.
    ``(3) The training provided at a military installation under 
paragraph (2)(C) shall include information on any financial services 
marketing practices that are particularly prevalent at that military 
installation and in the vicinity.
    ``(b) Counseling for Members and Spouses.--(1) The Secretary 
concerned shall provide counseling on financial services to each member 
of the armed forces under the jurisdiction of the Secretary.
    ``(2) The Secretary concerned shall, upon request, provide 
counseling on financial services to the spouse of any member of the 
armed forces under the jurisdiction of the Secretary.
    ``(2) The Secretary concerned shall provide counseling on financial 
services under this subsection as follows:
            ``(A) In the case of members, and the spouses of members, 
        assigned to a military installation to which at least 750 
        members of the armed forces are assigned, through a full-time 
        financial services counselor at such installation.
            ``(B) In the case of members, and the spouses of members, 
        assigned to a military installation other than an installation 
        described in subparagraph (A), through such mechanisms as the 
        Secretary considers appropriate, including through the 
        provision of counseling by a member of the armed forces in 
        grade E-7 or above, or a civilian, at such installation who 
        provides such counseling as a part of the other duties 
        performed by such member or civilian, as the case may be, at 
        such installation.
    ``(3) Each financial services counselor under paragraph (2)(A), and 
each individual providing counseling on financial services under 
paragraph (2)(B), shall be an individual who, by reason of education, 
training, or experience, is qualified to provide helpful counseling to 
members of the armed forces and their spouses on financial services and 
marketing practices described in subsection (a)(1). Such individual may 
be a member of the armed forces or an employee of the Federal 
Government.
    ``(4) The Secretary concerned shall take such action as is 
necessary to ensure that each financial services counselor under 
paragraph (2)(A), and each individual providing counseling on financial 
services under paragraph (2)(B), is free from conflicts of interest 
relevant to the performance of duty under this section and, in the 
performance of that duty, is dedicated to furnishing members of the 
armed forces and their spouses with helpful information and counseling 
on financial services and related marketing practices.
    ``(5) The Secretary concerned may authorize financial services 
counseling to be provided to members of a unit of the armed forces by 
unit personnel under the guidance and with the assistance of a 
financial services counselor under paragraph (2)(A) or an individual 
providing counseling on financial services under paragraph (2)(B), as 
applicable.
    ``(c) Life Insurance.--(1) In counseling a member of the armed 
forces, or spouse of a member of the armed forces, under this section 
regarding life insurance offered by a private sector source, a 
financial services counselor under subsection (b)(2)(A), or an 
individual providing counseling on financial services under subsection 
(b)(2)(B), shall furnish the member or spouse, as the case may be, with 
information on the availability of Servicemembers' Group Life Insurance 
under subchapter III of chapter 19 of title 38, including information 
on the amounts of coverage available and the procedures for electing 
coverage and the amount of coverage.
    ``(2)(A) A covered member of the armed forces may not authorize 
payment to be made for private sector life insurance by means of an 
allotment of pay to which the member is entitled under chapter 3 of 
title 37 unless the authorization of allotment is accompanied by a 
written certification by a commander of the member, or by a financial 
services counselor referred to in subsection (b)(2)(A) or an individual 
providing counseling on financial services under subsection (b)(2)(B), 
as applicable, that the member has received counseling under paragraph 
(1) regarding the purchase of coverage under that private sector life 
insurance.
    ``(B) Subject to subparagraph (C), a written certification 
described in subparagraph (A) may not be made with respect to a 
member's authorization of allotment as described in subparagraph (A) 
until 7 days after the date of the member's authorization of allotment 
in order to facilitate the provision of counseling to the member under 
paragraph (1).
    ``(C) The commander of a member may waive the applicability of 
subparagraph (B) to a member for good cause, including the member's 
imminent change of station.
    ``(D) In this paragraph, the term `covered member of the armed 
forces' means a member of the armed forces in grades E-1 through E-4.
    ``(d) Financial Services Defined.--In this section, the term 
`financial services' includes the following:
            ``(1) Life insurance, casualty insurance, and other 
        insurance.
            ``(2) Investments in securities or financial 
        instruments.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``992. Consumer education: financial services.''.
    (b) Continuing Effect of Existing Allotments for Life Insurance.--
Subsection (c)(2) of section 992 of title 10, United States Code (as 
added by subsection (a)), shall not affect any allotment of pay 
authorized by a member of the Armed Forces before the effective date of 
such section.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first month that begins more than 120 
days after the date of the enactment of this Act.
Military Personnel Financial Services Education Act of 2005 - Provides financial services and life insurance consumer education for members of the Armed Forces and their spouses, which shall be provided as a component of initial entry and recurring training. (Such training shall include information on financial services marketing practices that are particularly prevalent at a military installation and vicinity.)

Provides financial services counseling for members of the Armed Forces, and upon request, for their spouses. Requires a full-time trained counselor at installations with at least 750 assigned personnel, and other counseling at smaller installations.

Requires counselors to provide members or spouses with information on Servicemembers' Group Life Insurance when providing information on private sector life insurance. Prohibits E-1 through E-4 members to pay for private sector insurance through pay allotments without a written certification of counseling.
A bill to amend title 10, United States Code, to enhance the protection of members of the Armed Forces and their spouses from unscrupulous financial services sales practices through increased consumer education, and for other purposes.