I 

115TH CONGRESS 

2D SESSION H. R. 7299 

To provide for additional protections and disclosures to consumers when 

financial products or services are related to the consumers’ military 

or Federal pensions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 13, 2018 

Mr. CARTWRIGHT introduced the following bill; which was referred to the 

Committee on Financial Services, and in addition to the Committees on 

Veterans’ Affairs, Armed Services, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To provide for additional protections and disclosures to consumers when financial products or services are related 

to the consumers’ military or Federal pensions, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Annuity Safety and 

5 Security Under Reasonable Enforcement Act of 2018’’ or 

6 the ‘‘ASSURE Act of 2018’’. 


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1 SEC. 2. CONSIDERATION OF FEDERAL AND MILITARY PEN2 SIONS IN EXTENSIONS OF CREDIT. 

3 The Truth in Lending Act (15 U.S.C. 1601 et seq.) 

4 is amended— 

5 (1) in section 104(3), by inserting after ‘‘other 

6 than’’ the following: ‘‘payments described under sec7 tion 126(a) and’’; 

8 (2) by inserting after section 125 the following: 

9 ‘‘§ 126. Payments in consideration of Federal and 

10 military pensions 

11 ‘‘(a) DISCLOSURE.—The Bureau shall issue regula12 tions requiring any payment to a covered individual, 

13 whether or not such payment is an extension of credit, 

14 that diminishes the covered individual’s ability to control 

15 the payments from their Federal or military pension or 

16 Thrift Savings Plan in any way, to be treated as an exten17 sion of credit for purposes of the disclosures required 

18 under this title. 

19 ‘‘(b) INTEREST RATE CAP.—With respect to a pay20 ment to a covered individual described under subsection 

21 (a)— 

22 ‘‘(1) if such payment is an extension of con23 sumer credit, a creditor may not impose an annual 

24 percentage rate of interest greater than the Federal 

25 funds rate plus 6 percent; and 


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1 ‘‘(2) if such payment is not an extension of con2 sumer credit, the Bureau shall issue regulations re3 quiring that the aggregate amount of cash and prop4 erty paid in exchange for such payment may not ex5 ceed an amount that is equivalent to the interest 

6 rate described under paragraph (1). 

7 ‘‘(c) DEFINITIONS.—For purposes of this section: 

8 ‘‘(1) COVERED INDIVIDUAL.—The term ‘cov9 ered individual’ means— 

10 ‘‘(A) an individual who is entitled to pay11 ments under a Federal or military pension; and 

12 ‘‘(B) an individual who has not less than 

13 5 years of creditable service under section 8332 

14 or 8411 of title 5, United States Code, in a po15 sition in the civil service, as defined in section 

16 2101 of title 5, United States Code. 

17 ‘‘(2) FEDERAL OR MILITARY PENSION.—The 

18 term ‘Federal or military pension’ means— 

19 ‘‘(A) an annuity described under section 

20 8345 or 8465 of title 5, United States Code; 

21 ‘‘(B) retired or retainer pay payable to a 

22 member of the uniformed services (as that term 

23 is defined in section 101(a)(5) of title 10, 

24 United States Code); 


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1 ‘‘(C) compensation payable under chapter 

2 11 of title 38, United States Code; 

3 ‘‘(D) dependency and indemnity compensa4 tion payable under chapter 13 of title 38, 

5 United States Code; 

6 ‘‘(E) pension payable under chapter 15 of 

7 title 38, United States Code; and 

8 ‘‘(F) any other benefit described in section 

9 5301(a) of title 38, United States Code. 

10 ‘‘(3) FEDERAL FUNDS RATE.—For purposes of 

11 this section, the term ‘Federal funds rate’ means the 

12 Federal funds rate published in the Federal Reserve 

13 Statistical Release on selected interest rates (daily or 

14 weekly), and commonly referred to as the H.15 re15 lease (or any successor publication).’’; and 

16 (3) in the table of contents for chapter 2 of 

17 such Act, by inserting after the item relating to sec18 tion 125 the following: 

‘‘126. Payments in consideration of Federal and military pensions.’’. 

19 SEC. 3. CLARIFICATION OF ASSIGNMENTS; PRIVATE 

20 RIGHTS OF ACTIONS. 

21 (a) VETERANS BENEFITS.—Section 5301 of title 38, 

22 United States Code, is amended by adding at the end the 

23 following: 

24 ‘‘(f) PRIVATE RIGHT OF ACTION.— 


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1 ‘‘(1) IN GENERAL.—A benefit recipient may 

2 bring an action against a pension assignee in the ap3 propriate Federal or State court and recover— 

4 ‘‘(A) three times the damages suffered due 

5 to the assignment made in violation of this sec6 tion; 

7 ‘‘(B) court costs; and 

8 ‘‘(C) reasonable attorneys’ fees and ex9 penses. 

10 ‘‘(2) DEFINITIONS.—For purposes of this sub11 section: 

12 ‘‘(A) BENEFIT RECIPIENT.—The term 

13 ‘benefit recipient’ means a person with respect 

14 to which payments of benefits described under 

15 this section are due or are to become due. 

16 ‘‘(B) PENSION ASSIGNEE.—With respect to 

17 a benefit recipient, the term ‘pension assignee’ 

18 means a person who has been assigned the ben19 efits of the benefit recipient in violation of this 

20 section.’’. 

21 (b) MILITARY RETIRED PAY.—Section 701 of title 

22 37, United States Code, is amended— 

23 (1) in subsection (a), by striking ‘‘Under regu24 lations’’ and inserting ‘‘Subject to subsection (f) and 

25 under regulations’’; and 


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1 (2) by adding at the end the following new sub2 section: 

3 ‘‘(f)(1) Except as provided in paragraph (2), for pur4 poses of subsections (a) and (c), in any case where a mem5 ber is entitled to retired or retainer pay and enters into 

6 an agreement with another person under which agreement 

7 such other person acquires for consideration the right to 

8 receive payment of such retired or retainer pay, whether 

9 by payment from the member to such other person, de10 posit into an account from which such other person may 

11 make withdrawals, or otherwise, such agreement shall be 

12 deemed to be an assignment and is void. Any agreement 

13 or arrangement for collateral for security for an agreement 

14 that is void under this paragraph is also void. 

15 ‘‘(2) Paragraph (1) does not apply to a right to re16 ceive payment of retired or retainer pay in compliance with 

17 a court order as provided for in section 1408 of title 10 

18 or as otherwise expressly authorized by law. 

19 ‘‘(3)(A) A retired pay recipient may bring an action 

20 against a retired pay assignee in the appropriate Federal 

21 or State court and recover— 

22 ‘‘(i) three times the damages suffered due to 

23 the assignment of retired pay made in violation of 

24 this subsection; 

25 ‘‘(ii) court costs; and 


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1 ‘‘(iii) reasonable attorneys’ fees and expenses. 

2 ‘‘(B) In this paragraph: 

3 ‘‘(i) The term ‘retired pay recipient’ means a 

4 person with respect to which retired or retainer pay 

5 covered by this subsection is due or is to become 

6 due. 

7 ‘‘(ii) The term ‘retired pay assignee’, with re8 spect to a retired pay recipient, means a person who 

9 has been assigned or allotted the retired or retainer 

10 pay of the retired pay recipient in violation of this 

11 subsection.’’. 

12 (c) CSRS ANNUITIES.—Section 8345(h) of title 5, 

13 United States Code, is amended to read as follows: 

14 ‘‘(h) NON-ASSIGNMENT OF ANNUITIES.— 

15 ‘‘(1) IN GENERAL.—An individual entitled to an 

16 annuity from the Fund may not make allotments or 

17 assignments of amounts from such annuity. 

18 ‘‘(2) CONSTRUCTION.—For purposes of this 

19 subsection— 

20 ‘‘(A) in any case where an individual enti21 tled to an annuity from the Fund enters into an 

22 agreement with another person under which 

23 agreement such other person acquires for con24 sideration the right to receive payment of such 

25 annuity, whether by payment from the indiVerDate Sep 11 2014 18:40 Dec 18, 2018 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7299.IH H7299

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1 vidual to such other person, deposit into an ac2 count from which such other person may make 

3 withdrawals, or otherwise, such agreement shall 

4 be deemed to be an assignment and is prohib5 ited; and 

6 ‘‘(B) any agreement or arrangement for 

7 collateral for security for an agreement that is 

8 prohibited under subparagraph (A) is also pro9 hibited. 

10 ‘‘(3) EXCEPTION.—Paragraphs (1) and (2) 

11 shall not apply to amounts used to pay dues to 

12 unions or other employee organizations. 

13 ‘‘(4) PRIVATE RIGHT OF ACTION.— 

14 ‘‘(A) IN GENERAL.—An annuity recipient 

15 may bring an action against an annuity as16 signee in the appropriate Federal or State court 

17 and recover— 

18 ‘‘(i) three times the damages suffered 

19 due to the assignment made in violation of 

20 this subsection or the regulations issued 

21 pursuant to this subsection; 

22 ‘‘(ii) court costs; and 

23 ‘‘(iii) reasonable attorneys’ fees and 

24 expenses. 


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1 ‘‘(B) DEFINITIONS.—For purposes of this 

2 paragraph: 

3 ‘‘(i) ANNUITY ASSIGNEE.—With re4 spect to an annuity recipient, the term ‘an5 nuity assignee’ means a person who has 

6 been assigned or allotted all or part of an 

7 annuity from the Fund in violation of this 

8 subsection or the regulations issued pursu9 ant to this subsection. 

10 ‘‘(ii) ANNUITY RECIPIENT.—The term 

11 ‘annuity recipient’ means an individual en12 titled to an annuity from the Fund.’’. 

13 (d) FERS ANNUITIES.—Section 8465(b) of title 5, 

14 United States Code, is amended to read as follows: 

15 ‘‘(b) NON-ASSIGNMENT OF ANNUITIES.— 

16 ‘‘(1) IN GENERAL.—An individual entitled to an 

17 annuity from the Fund may not make allotments or 

18 assignments of amounts from such annuity. 

19 ‘‘(2) CONSTRUCTION.—For purposes of this 

20 subsection— 

21 ‘‘(A) in any case where an individual enti22 tled to an annuity from the Fund enters into an 

23 agreement with another person under which 

24 agreement such other person acquires for con25 sideration the right to receive payment of such 


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1 annuity, whether by payment from the indi2 vidual to such other person, deposit into an ac3 count from which such other person may make 

4 withdrawals, or otherwise, such agreement shall 

5 be deemed to be an assignment and is prohib6 ited; and 

7 ‘‘(B) any agreement or arrangement for 

8 collateral for security for an agreement that is 

9 prohibited under subparagraph (A) is also pro10 hibited. 

11 ‘‘(3) EXCEPTION.—Paragraphs (1) and (2) 

12 shall not apply to amounts used to pay dues to 

13 unions or other employee organizations. 

14 ‘‘(4) PRIVATE RIGHT OF ACTION.— 

15 ‘‘(A) IN GENERAL.—An annuity recipient 

16 may bring an action against an annuity as17 signee in the appropriate Federal or State court 

18 and recover— 

19 ‘‘(i) three times the damages suffered 

20 due to the assignment made in violation of 

21 this subsection or the regulations issued 

22 pursuant to this subsection; 

23 ‘‘(ii) court costs; and 

24 ‘‘(iii) reasonable attorneys’ fees and 

25 expenses. 


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1 ‘‘(B) DEFINITIONS.—For purposes of this 

2 paragraph: 

3 ‘‘(i) ANNUITY ASSIGNEE.—With re4 spect to an annuity recipient, the term ‘an5 nuity assignee’ means a person who has 

6 been assigned or allotted all or part of an 

7 annuity from the Fund in violation of this 

8 subsection or the regulations issued pursu9 ant to this subsection. 

10 ‘‘(ii) ANNUITY RECIPIENT.—The term 

11 ‘annuity recipient’ means an individual en12 titled to an annuity from the Fund.’’. 

13 SEC. 4. BUREAU OF CONSUMER FINANCIAL PROTECTION 

14 PROVISIONS. 

15 (a) REGULATION OF FEDERAL OR MILITARY PEN16 SION-RELATED PRODUCTS.—Section 1032 of the Con17 sumer Financial Protection Act of 2010 (12 U.S.C. 5532) 

18 is amended by adding at the end the following: 

19 ‘‘(g) REGULATION OF FEDERAL OR MILITARY PEN20 SION-RELATED PRODUCTS.— 

21 ‘‘(1) IN GENERAL.—The Bureau shall issue 

22 regulations to require a person offering a Federal or 

23 military pension-related product to provide addi24 tional disclosures when advertising or selling such 


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1 product, sufficient to allow consumers to under2 stand— 

3 ‘‘(A) how their pension relates to the prod4 uct; and 

5 ‘‘(B) whether any insured depository insti6 tution also offers the product. 

7 ‘‘(2) DEFINITIONS DEFINED.—For purposes of 

8 this subsection: 

9 ‘‘(A) FEDERAL OR MILITARY PENSION.— 

10 The term ‘Federal or military pension’ means— 

11 ‘‘(i) a benefit described under section 

12 5301(a) of title 38, United States Code; 

13 ‘‘(ii) retired pay to an enlisted mem14 ber of the Army, Navy, Air Force, Marine 

15 Corps, or Coast Guard; 

16 ‘‘(iii) an annuity described under sec17 tion 8345 or 8465 of title 5, United States 

18 Code; 

19 ‘‘(iv) compensation under chapter 11 

20 of title 38, United States Code; and 

21 ‘‘(v) dependency and indemnity com22 pensation under chapter 13 of title 38, 

23 United States Code. 

24 ‘‘(B) FEDERAL OR MILITARY PENSION-RE25 LATED PRODUCT.—The term ‘Federal or miliVerDate Sep 11 2014 18:40 Dec 18, 2018 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H7299.IH H7299

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1 tary pension-related product’ means a financial 

2 product or service related to a Federal or mili3 tary pension, including any extension of credit 

4 if the creditor, when determining a consumer’s 

5 ability to repay the extension of credit, takes 

6 the pension into consideration.’’. 

7 (b) STUDY BY THE BUREAU.— 

8 (1) IN GENERAL.—The Bureau of Consumer 

9 Financial Protection shall carry out a study of fi10 nancial products and services that target military re11 tirees and Federal employee retirees. 

12 (2) REPORT.—Not later than the end of the 3- 

13 month period beginning on the date of the enact14 ment of this Act, the Bureau shall issue a report to 

15 the Congress containing all findings and determina16 tions made in carrying out the study required under 

17 this subsection. 

Æ 


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