SEC. 2. CONSIDERATION OF FEDERAL AND MILITARY PEN-
SIONS IN EXTENSIONS OF CREDIT. 
The Truth in Lending Act (15 U.S.C. 1601 et seq.) 
is amended— 
(1) in section 104(3), by inserting after ‘‘other 
than’’ the following: ‘‘payments described under sec-
tion 126(a) and’’; 
(2) by inserting after section 125 the following: 
‘‘§ 126. Payments in consideration of Federal and 
military pensions 
‘‘(a) DISCLOSURE.—The Bureau shall issue regula-
tions requiring any payment to a covered individual, 
whether or not such payment is an extension of credit, 
that diminishes the covered individual’s ability to control 
the payments from their Federal or military pension or 
Thrift Savings Plan in any way, to be treated as an exten-
sion of credit for purposes of the disclosures required 
under this title. 
‘‘(b) INTEREST RATE CAP.—With respect to a pay-
ment to a covered individual described under subsection 
(a)— 
‘‘(1) if such payment is an extension of con-
sumer credit, a creditor may not impose an annual 
percentage rate of interest greater than the Federal 
funds rate plus 6 percent; and 
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(2) if such payment is not an extension of con-
sumer credit, the Bureau shall issue regulations re-
quiring that the aggregate amount of cash and prop-
erty paid in exchange for such payment may not ex-
ceed an amount that is equivalent to the interest 
rate described under paragraph (1). 
‘‘(c) DEFINITIONS.—For purposes of this section: 
‘‘(1) COVERED
INDIVIDUAL.—The term ‘cov-
ered individual’ means— 
‘‘(A) an individual who is entitled to pay-
ments under a Federal or military pension; and 
‘‘(B) an individual who has not less than 
5 years of creditable service under section 8332 
or 8411 of title 5, United States Code, in a po-
sition in the civil service, as defined in section 
2101 of title 5, United States Code. 
‘‘(2) FEDERAL
OR
MILITARY
PENSION.—The 
term ‘Federal or military pension’ means— 
‘‘(A) an annuity described under section 
8345 or 8465 of title 5, United States Code; 
‘‘(B) retired or retainer pay payable to a 
member of the uniformed services (as that term 
is defined in section 101(a)(5) of title 10, 
United States Code); 
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(C) compensation payable under chapter 
11 of title 38, United States Code; 
‘‘(D) dependency and indemnity compensa-
tion payable under chapter 13 of title 38, 
United States Code; 
‘‘(E) pension payable under chapter 15 of 
title 38, United States Code; and 
‘‘(F) any other benefit described in section 
5301(a) of title 38, United States Code. 
‘‘(3) FEDERAL FUNDS RATE.—For purposes of 
this section, the term ‘Federal funds rate’ means the 
Federal funds rate published in the Federal Reserve 
Statistical Release on selected interest rates (daily or 
weekly), and commonly referred to as the H.15 re-
lease (or any successor publication).’’; and 
(3) in the table of contents for chapter 2 of 
such Act, by inserting after the item relating to sec-
tion 125 the following: 
‘‘126. Payments in consideration of Federal and military pensions.’’. 
SEC. 
3. 
CLARIFICATION 
OF 
ASSIGNMENTS; 
PRIVATE 
RIGHTS OF ACTIONS. 
(a) VETERANS BENEFITS.—Section 5301 of title 38, 
United States Code, is amended by adding at the end the 
following: 
‘‘(f) PRIVATE RIGHT OF ACTION.— 
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(1) IN
GENERAL.—A benefit recipient may 
bring an action against a pension assignee in the ap-
propriate Federal or State court and recover— 
‘‘(A) three times the damages suffered due 
to the assignment made in violation of this sec-
tion; 
‘‘(B) court costs; and 
‘‘(C) reasonable attorneys’ fees and ex-
penses. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) BENEFIT
RECIPIENT.—The term 
‘benefit recipient’ means a person with respect 
to which payments of benefits described under 
this section are due or are to become due. 
‘‘(B) PENSION ASSIGNEE.—With respect to 
a benefit recipient, the term ‘pension assignee’ 
means a person who has been assigned the ben-
efits of the benefit recipient in violation of this 
section.’’. 
(b) MILITARY RETIRED PAY.—Section 701 of title 
37, United States Code, is amended— 
(1) in subsection (a), by striking ‘‘Under regu-
lations’’ and inserting ‘‘Subject to subsection (f) and 
under regulations’’; and 
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
(2) by adding at the end the following new sub-
section: 
‘‘(f)(1) Except as provided in paragraph (2), for pur-
poses of subsections (a) and (c), in any case where a mem-
ber is entitled to retired or retainer pay and enters into 
an agreement with another person under which agreement 
such other person acquires for consideration the right to 
receive payment of such retired or retainer pay, whether 
by payment from the member to such other person, de-
posit into an account from which such other person may 
make withdrawals, or otherwise, such agreement shall be 
deemed to be an assignment and is void. Any agreement 
or arrangement for collateral for security for an agreement 
that is void under this paragraph is also void. 
‘‘(2) Paragraph (1) does not apply to a right to re-
ceive payment of retired or retainer pay in compliance with 
a court order as provided for in section 1408 of title 10 
or as otherwise expressly authorized by law. 
‘‘(3)(A) A retired pay recipient may bring an action 
against a retired pay assignee in the appropriate Federal 
or State court and recover— 
‘‘(i) three times the damages suffered due to 
the assignment of retired pay made in violation of 
this subsection; 
‘‘(ii) court costs; and 
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(iii) reasonable attorneys’ fees and expenses. 
‘‘(B) In this paragraph: 
‘‘(i) The term ‘retired pay recipient’ means a 
person with respect to which retired or retainer pay 
covered by this subsection is due or is to become 
due. 
‘‘(ii) The term ‘retired pay assignee’, with re-
spect to a retired pay recipient, means a person who 
has been assigned or allotted the retired or retainer 
pay of the retired pay recipient in violation of this 
subsection.’’. 
(c) CSRS ANNUITIES.—Section 8345(h) of title 5, 
United States Code, is amended to read as follows: 
‘‘(h) NON-ASSIGNMENT OF ANNUITIES.— 
‘‘(1) IN GENERAL.—An individual entitled to an 
annuity from the Fund may not make allotments or 
assignments of amounts from such annuity. 
‘‘(2) CONSTRUCTION.—For purposes of this 
subsection— 
‘‘(A) in any case where an individual enti-
tled to an annuity from the Fund enters into an 
agreement with another person under which 
agreement such other person acquires for con-
sideration the right to receive payment of such 
annuity, whether by payment from the indi-
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
vidual to such other person, deposit into an ac-
count from which such other person may make 
withdrawals, or otherwise, such agreement shall 
be deemed to be an assignment and is prohib-
ited; and 
‘‘(B) any agreement or arrangement for 
collateral for security for an agreement that is 
prohibited under subparagraph (A) is also pro-
hibited. 
‘‘(3) EXCEPTION.—Paragraphs (1) and (2) 
shall not apply to amounts used to pay dues to 
unions or other employee organizations. 
‘‘(4) PRIVATE RIGHT OF ACTION.— 
‘‘(A) IN GENERAL.—An annuity recipient 
may bring an action against an annuity as-
signee in the appropriate Federal or State court 
and recover— 
‘‘(i) three times the damages suffered 
due to the assignment made in violation of 
this subsection or the regulations issued 
pursuant to this subsection; 
‘‘(ii) court costs; and 
‘‘(iii) reasonable attorneys’ fees and 
expenses. 
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph: 
‘‘(i) ANNUITY
ASSIGNEE.—With re-
spect to an annuity recipient, the term ‘an-
nuity assignee’ means a person who has 
been assigned or allotted all or part of an 
annuity from the Fund in violation of this 
subsection or the regulations issued pursu-
ant to this subsection. 
‘‘(ii) ANNUITY RECIPIENT.—The term 
‘annuity recipient’ means an individual en-
titled to an annuity from the Fund.’’. 
(d) FERS ANNUITIES.—Section 8465(b) of title 5, 
United States Code, is amended to read as follows: 
‘‘(b) NON-ASSIGNMENT OF ANNUITIES.— 
‘‘(1) IN GENERAL.—An individual entitled to an 
annuity from the Fund may not make allotments or 
assignments of amounts from such annuity. 
‘‘(2) CONSTRUCTION.—For purposes of this 
subsection— 
‘‘(A) in any case where an individual enti-
tled to an annuity from the Fund enters into an 
agreement with another person under which 
agreement such other person acquires for con-
sideration the right to receive payment of such 
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
annuity, whether by payment from the indi-
vidual to such other person, deposit into an ac-
count from which such other person may make 
withdrawals, or otherwise, such agreement shall 
be deemed to be an assignment and is prohib-
ited; and 
‘‘(B) any agreement or arrangement for 
collateral for security for an agreement that is 
prohibited under subparagraph (A) is also pro-
hibited. 
‘‘(3) EXCEPTION.—Paragraphs (1) and (2) 
shall not apply to amounts used to pay dues to 
unions or other employee organizations. 
‘‘(4) PRIVATE RIGHT OF ACTION.— 
‘‘(A) IN GENERAL.—An annuity recipient 
may bring an action against an annuity as-
signee in the appropriate Federal or State court 
and recover— 
‘‘(i) three times the damages suffered 
due to the assignment made in violation of 
this subsection or the regulations issued 
pursuant to this subsection; 
‘‘(ii) court costs; and 
‘‘(iii) reasonable attorneys’ fees and 
expenses. 
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph: 
‘‘(i) ANNUITY
ASSIGNEE.—With re-
spect to an annuity recipient, the term ‘an-
nuity assignee’ means a person who has 
been assigned or allotted all or part of an 
annuity from the Fund in violation of this 
subsection or the regulations issued pursu-
ant to this subsection. 
‘‘(ii) ANNUITY RECIPIENT.—The term 
‘annuity recipient’ means an individual en-
titled to an annuity from the Fund.’’. 
SEC. 4. BUREAU OF CONSUMER FINANCIAL PROTECTION 
PROVISIONS. 
(a) REGULATION OF FEDERAL OR MILITARY PEN-
SION-RELATED PRODUCTS.—Section 1032 of the Con-
sumer Financial Protection Act of 2010 (12 U.S.C. 5532) 
is amended by adding at the end the following: 
‘‘(g) REGULATION OF FEDERAL OR MILITARY PEN-
SION-RELATED PRODUCTS.— 
‘‘(1) IN
GENERAL.—The Bureau shall issue 
regulations to require a person offering a Federal or 
military pension-related product to provide addi-
tional disclosures when advertising or selling such 
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
product, sufficient to allow consumers to under-
stand— 
‘‘(A) how their pension relates to the prod-
uct; and 
‘‘(B) whether any insured depository insti-
tution also offers the product. 
‘‘(2) DEFINITIONS DEFINED.—For purposes of 
this subsection: 
‘‘(A) FEDERAL OR MILITARY PENSION.— 
The term ‘Federal or military pension’ means— 
‘‘(i) a benefit described under section 
5301(a) of title 38, United States Code; 
‘‘(ii) retired pay to an enlisted mem-
ber of the Army, Navy, Air Force, Marine 
Corps, or Coast Guard; 
‘‘(iii) an annuity described under sec-
tion 8345 or 8465 of title 5, United States 
Code; 
‘‘(iv) compensation under chapter 11 
of title 38, United States Code; and 
‘‘(v) dependency and indemnity com-
pensation under chapter 13 of title 38, 
United States Code. 
‘‘(B) FEDERAL OR MILITARY PENSION-RE-
LATED PRODUCT.—The term ‘Federal or mili-
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS
tary pension-related product’ means a financial 
product or service related to a Federal or mili-
tary pension, including any extension of credit 
if the creditor, when determining a consumer’s 
ability to repay the extension of credit, takes 
the pension into consideration.’’. 
(b) STUDY BY THE BUREAU.— 
(1) IN GENERAL.—The Bureau of Consumer 
Financial Protection shall carry out a study of fi-
nancial products and services that target military re-
tirees and Federal employee retirees. 
(2) REPORT.—Not later than the end of the 3- 
month period beginning on the date of the enact-
ment of this Act, the Bureau shall issue a report to 
the Congress containing all findings and determina-
tions made in carrying out the study required under 
this subsection. 
Æ 
VerDate Sep 11 2014 
18:40 Dec 18, 2018
Jkt 089200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6301
E:\BILLS\H7299.IH
H7299
pamtmann on DSKBFK8HB2PROD with BILLS