U.S. Senator Claire McCaskill is targeting big financial firms that are abusing military
veterans’ benefits through a practice coined “pension-poaching.”
McCaskill told a Senate panel yesterday that
legislation is required to address the practice, in which financial institutions
use loopholes to abuse programs that provide benefits to veterans. More than
200 financial service organizations across the country have begun marketing
estate planning services to veterans in order to help them qualify for
additional benefits—services which often involve the “restructuring” of the
veteran’s asssets in order for them to appear indigent. These firms then charge
veterans exorbitant fees or permanently prevent them from accessing their
assets.
“These companies have figured out that they can
make money off of this sleazy practice, and they’re compromising the integrity
of these proud men and women,” said McCaskill, the daughter of a World War II
veteran. “This is a kissing-cousin of criminal fraud if it isn’t out-and-out
fraud.”
Such practices, while not technically illegal,
sparked a year-long investigation by the Government Accountability Office (GAO)
after repeated complaints by veterans and their families. The report identified
a number of issues, including the complexity of application processes, a lack
of clear guidance for determining eligibility, and an inability by
administrators to look at financial histories.
“This is a generation that I’m very familiar with—my dad
served and he didn’t feel like what he did was special,” McCaskill said. “I hurt
for the men and women here because the last thing in the world they want in
their life is being accused of taking something they don’t deserve.”
McCaskill is supporting legislation along with
Senator Ron Wyden (D-OR) in order to prevent these practices.
“Pension poachers better look out, because
Senator McCaskill is going to be coming after ‘em,” Wyden said at yesterday’s
hearing. “If anybody can figure out how to make sure that we take the toughest,
most aggressive approach to these pensions-poachers, it’s the Senator from
Missouri.”
Yesterday’s hearing included veterans advocacy
groups, family members of veterans that had been victims of financial firms, and
Emily Schwarz, President of Veterans Financial—a firm created specifically to
engage in these practices—who only appeared before the Committee after she was
threatened with a subpoena.
On Tuesday, McCaskill chaired a subcommittee hearing on veteran employment,
and yesterday she welcomed the last-ever Honor Flight carrying
veterans from the Ozarks to the World War II Memorial. McCaskill has championed veterans causes since coming to
the Senate in 2006 and was a founding member of The Veterans Jobs
Caucus. McCaskill was a leading advocate for the
VOW to Hire Heroes Act, and has repeatedly rallied support for additional
care for veterans returning from combat duty.
Video of yesterday’s hearing is available
HERE.
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