Veterans Agency Made Secret Deal Over Benefits

[cal04]

http://www.bloomberg.com/news/2010-09-14/veterans-agency-arranged-secret-deal-with-prudential-over-soldier-benefits.html

The U.S. Department of Veterans Affairs failed to inform 6 million soldiers and their families of an agreement enabling Prudential Financial Inc. to withhold lump-sum payments of life insurance benefits for survivors of fallen service members, according to records made public through a Freedom of Information request.

The amendment to Prudential’s contract is the first document to show how VA officials sanctioned a payment practice that has spurred investigations by lawmakers and regulators. Since 1999, Prudential has used so-called retained-asset accounts, which allow the company to withhold lump sum payments due to survivors and earn investment income on the money for itself.

The Sept. 1, 2009, amendment to Prudential’s contract with the VA ratified another unpublicized deal that had been struck between the insurer and the government 10 years earlier -- one that was never put into writing, Bloomberg Markets magazine reports in its November issue. This verbal agreement in 1999 provoked concern among top insurance officials of the agency, the documents released in the FOIA request show.

http://www.huffingtonpost.com/

[DrDan]

1. looks like the D's are going to own this one - handshake in 1999 and written in 2009

it is outrageous . . . but somehow, it sure seems like Prudential is doing what was agreed to.

[BrklynLiberal]

3. I would like some publicity of the names of the VA "officials" who ok'd this...

[DrDan]

4. and why . . . . this can only benefit Prudential

[BrklynLiberal]

2. "Veterans" affairs? Did they consider this to be in the best interest of the vets?

SUE PRUDENTIAL..for all interest earned on unpaid funds durng those years