Financial Readiness of America’s Servicemembers Act of 2021
Bill: H.R.5888 | Sponsor: Rep. Wagner, Ann (R-MO)
Policy area: Armed Forces and National Security

Summary:
Financial Readiness of America's Servicemembers Act of 2021
This bill modifies the financial literacy training program for servicemembers (and spouses of such members) and requires the Federal Retirement Thrift Investment Board to submit a plan to Congress on improving the access of members to certain information about the Thrift Savings Plan.

To improve the provision of financial literacy training and information 
   relating to the Blended Retirement System to members of the Armed 
                    Forces, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Readiness of America's 
Servicemembers Act of 2021''.

SEC. 2. IMPROVEMENTS TO FINANCIAL LITERACY TRAINING.

    (a) In General.--Subsection (a) of section 992 of title 10, United 
States Code, is amended--
            (1) in paragraph (2)(C), by striking ``grade E-4'' and 
        inserting ``grade E-6''; and
            (2) by adding at the end the following new paragraph:
            ``(5) In carrying out the program to provide training under 
        this subsection, the Secretary concerned shall--
                    ``(A) require the development of a standard minimum 
                curriculum across all military departments for such 
                training that--
                            ``(i) 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 
                        modules;
                            ``(ii) is based on best practices in the 
                        financial services industry; and
                            ``(iii) is designed to address the needs of 
                        members and their families;
                    ``(B) ensure that such training--
                            ``(i) is conducted by a registered 
                        investment adviser or a broker-dealer 
                        registered with the Securities and Exchange 
                        Commission who utilizes instructors with 
                        advanced credentials (as determined by the 
                        Secretary); and
                            ``(ii) is provided, to the extent 
                        practicable--
                                    ``(I) in a class held in person 
                                with fewer than 50 attendees;
                                    ``(II) one-on-one between the 
                                member and a financial services 
                                counselor or a qualified representative 
                                described in subclause (III) or (IV) of 
                                subsection (b)(2)(A)(ii); or
                                    ``(III) remotely via electronic 
                                means;
                    ``(C) ensure that--
                            ``(i) an in-person or remote class 
                        described in subparagraph (B)(i)(I) is 
                        available to the spouse of a member; and
                            ``(ii) if a spouse of a member is unable to 
                        attend such a class in person--
                                    ``(I) training is available to the 
                                spouse through the Military OneSource 
                                Program; and
                                    ``(II) the member is informed 
                                during the in-person training of the 
                                member under subparagraph (B)(i) with 
                                respect to how the spouse of the member 
                                can access the training; and
                    ``(D) ensure that such training, and all documents 
                and materials provided in relation to such training, 
                are presented or written in a manner that the Secretary 
                concerned determines can be understood by the average 
                enlisted member.''.
    (b) Qualified Representatives for Counseling for Members and 
Spouses.--Subsection (b)(2) of such section is amended--
            (1) in subparagraph (A)(ii), by adding at the end the 
        following:
                    ``(IV) Through qualified representatives of banks 
                or credit unions operating on military installations 
                pursuant to an agreement with the Secretary concerned, 
                or through a qualified representative of a financial 
                planning firm who has been approved by the Secretary 
                concerned to provide such counseling on a military 
                installation pursuant to regulations or guidance 
                prescribed by the Secretary concerned; and''; and
            (2) by adding at the end the following new subparagraph:
    ``(C) No professional financial planning firm may be disqualified 
from providing counseling under subparagraph (A)(ii) solely on the 
basis that the firm operates a commercial business in the financial 
services industry.''.
    (c) Provision of Retirement Information.--Such section is further 
amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (g), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Provision of Retirement Information.--In each training under 
subsection (a) and in each meeting to provide counseling under 
subsection (b), a member of the armed forces shall be provided with the 
following, in both hard copy and electronic format:
            ``(1) All forms relating to retirement that are relevant to 
        the member, including with respect to the Thrift Savings Plan.
            ``(2) Information with respect to how to find additional 
        information.
            ``(3) Contact information for--
                    ``(A) a counselor provided through--
                            ``(i) the Personal Financial Counselor 
                        program, Personal Financial Management program, 
                        or the Military OneSource Program; or
                            ``(ii) a nonprofit organization or agency 
                        that has a current agreement with the Secretary 
                        concerned to provide financial services 
                        counseling; or
                    ``(B) a qualified representative of--
                            ``(i) a bank or credit union operating on a 
                        military installation pursuant to an agreement 
                        with the Secretary concerned; and
                            ``(ii) a certified financial planning firm 
                        approved by the Secretary concerned to provide 
                        such counseling on a military installation 
                        pursuant to regulations or guidance prescribed 
                        by the Secretary concerned.''.
    (d) Advisory Council on Financial Readiness.--Such section is 
further amended by inserting after subsection (e), as redesignated by 
subsection (c)(1), the following new subsection:
    ``(f) Advisory Council on Financial Readiness.--(1) There is 
established an Advisory Council on Financial Readiness (in this section 
referred to as the `Council').
    ``(2)(A) The Council shall consist of 15 members appointed by the 
Secretary of Defense, as follows--
            ``(i) three shall be representatives of military support 
        organizations;
            ``(ii) three shall be representatives of veterans service 
        organizations;
            ``(iii) three shall be representatives of private nonprofit 
        organizations with a vested interest in education and 
        communication of financial education and financial services;
            ``(iv) three shall be representatives of firms who employ 
        registered investment advisors or broker-dealers as defined 
        under the Federal securities laws; and
            ``(v) three shall be representatives of governmental 
        entities with a vested interest in education and communication 
        of financial education and financial services.
    ``(B) The Secretary shall appoint members to the Council from among 
individuals qualified to appraise military compensation, military 
retirement, and financial literacy training.
    ``(C) Members of the Council shall serve for terms of three years, 
except that, of the members first appointed--
            ``(i) five shall be appointed for terms of one year;
            ``(ii) five shall be appointed for terms of two years; and
            ``(iii) five shall be appointed for terms of three years.
    ``(D) A member of the Council may be reappointed for additional 
terms.
    ``(E) 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 term.
    ``(3) The Council shall--
            ``(A) advise the Secretary with respect to matters relating 
        to the financial literacy and financial readiness of members of 
        the armed forces; and
            ``(B) submit to the Secretary recommendations with respect 
        to those matters.
    ``(4)(A) Subject to subparagraph (B), the Council shall meet not 
less frequently than twice each year and at such other times as the 
Secretary requests.
    ``(B) A majority of members shall constitute a quorum and action 
shall be taken only by a majority vote of the members present and 
voting.
    ``(5) The Secretary--
            ``(A) shall provide to the Council an executive secretary 
        and such secretarial, clerical, and other support services as 
        the Council considers necessary to carry out the duties of the 
        Council; and
            ``(B) may request that other Federal agencies provide 
        statistical data, reports, and other information that is 
        reasonably accessible to assist the Council in the performance 
        of the duties of the Council.
    ``(6) While away from their homes or regular places of business in 
the performance of services for Council, members of the Council shall 
be allowed travel expenses, including per diem in lieu of subsistence, 
in the same manner as persons employed intermittently in the Government 
service are allowed expenses under section 5703 of title 5.
    ``(7) Not less frequently than annually, the Secretary shall submit 
to Congress a report that--
            ``(A) describes each recommendation received from the 
        Council during the preceding year; and
            ``(B) indicates, with respect to each such recommendation, 
        whether the Secretary has implemented the recommendation and, 
        if not, an explanation of why the Secretary has not implemented 
        the recommendation.
    ``(8) Section 14(a) of the Federal Advisory Committee Act (5 U.S.C. 
App.) (relating to termination) shall not apply to the Council.
    ``(9)(A) Subject to subparagraph (B), the Council shall terminate 
on the day that is five years after the date of the enactment of the 
Financial Readiness of America's Servicemembers Act of 2021.
    ``(B) The Secretary may renew the Council for an additional periods 
each of which shall not exceed five years in duration.
    ``(10) In this subsection:
            ``(A) The terms `broker-dealer' and `registered investment 
        advisor' have the meanings given such terms in section 202 of 
        the Investment Advisers Act of 1940 (15 U.S.C. 80a-3).
            ``(B) The term `military support organization' means an 
        organization that provides support to members of the armed 
        forces and their families with respect to education, finances, 
        health care, employment, and overall well-being.
            ``(C) The term `private nonprofit organization' means an 
        entity described in section 501(c) of the Internal Revenue Code 
        of 1986 (26 U.S.C. 501(c)).
            ``(D) The term `veterans service organization' means any 
        organization recognized by the Secretary of Veterans Affairs 
        for the representation of veterans under section 5902 of title 
        38.''.
    (e) Report on Effectiveness of Financial Services Counseling.--Not 
later than three years after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees (as that term is defined in section 101 of title 10, United 
States Code) a report on financial literacy training and financial 
services counseling provided under section 992 of title 10, United 
States Code, as amended by this section, that assesses--
            (1) the effectiveness of such training and counseling, 
        which shall be determined using actual localized data similar 
        to the Unit Risk Inventory Survey of the Army; and
            (2) whether additional training or counseling is necessary 
        for enlisted members of the Armed Forces or for officers.
    (f) Regulations.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall prescribe 
regulations to carry out this section.

SEC. 3. REPORT ON IMPROVED ACCESS TO THRIFT SAVINGS PLAN.

    Not later than 18 months after the date of the enactment of this 
Act, 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--
            (1) 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 information; 
        and
            (2) includes recommendations for legislation necessary to 
        improve such access.
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