Cheating the families of fallen servicemen

Discussion in 'Politics, Religion, Social Issues' started by Shivetya, Sep 16, 2010.

  1. Shivetya macrumors 65816

    Jan 16, 2008
    Seems Prudential and he U.S. Department of Veterans Affairs high ranking government officials agreed to cheat the families of fallen servicemen.

    ut in a quiet arrangement that ought to boil the blood of every American, the U.S. Department of Veterans Affairs and Prudential Financial agreed last year to make official a little-known practice that has gone on for more than a decade: Instead of sending lump-sum insurance benefits to the survivors of deceased service members, Prudential Financial would keep the money in what it calls a "retained-access account," earning a relative handsome rate of return for the company but an appallingly low benefit for families who could make withdrawals.

    Under this arrangement, Bloomberg News reported Tuesday, Prudential Financial earned 4.2 percent on some $662 million in survivors' money that it retained. But the company paid 0.5 percent interest to survivors. That's not right.

    Read more:

    As in, they keep the balance in a non-FDIC insured account, make money off of it, and don't give any of those profits back too those who deserved all the money up front. To think, people want this same government to run their health care. Can't wait for all the stories that will erupt out of that mess once government goons get their hands on the money and rules.

    This is typical of an overly large bureaucracy, they make things up as they go and when caught nothing really happens. Higher ups can claim ignorance as a defense and underlings are just following orders.
  2. ucfgrad93 macrumors P6


    Aug 17, 2007
  3. chrmjenkins macrumors 603


    Oct 29, 2007
    Didn't bother to read the comments?

    The family apparently still has the right to claim the full balance as soon as the money is made available to them. They have the option of letting the money sit in the account and earn a small amount of interest, while the insurer collects the lion's share of it (for what savings account would this not be true?).

    It seems to be nothing more than a poor interest bearing deal for the families should they choose to withdraw over time. The fact that it is not FDIC insured is rather moot I'd venture. If the company failed to pay up, you bet your ass the government would get the money from the company somehow to avoid the appearance of impropriety when it comes to veteran affairs.
  4. .Andy macrumors 68030


    Jul 18, 2004
    The Mergui Archipelago
    That's a whole different story from the OP then.
  5. chrmjenkins macrumors 603


    Oct 29, 2007
    Indeed. While I would label the act disingenuous and a bad deal (as far as what they could get on the free market interest wise), I wouldn't venture near terms like travesty.

    And a retort is here:

    Again, from the comments.
  6. iShater macrumors 604


    Aug 13, 2002
    This story came out long time ago, I remember hearing about it on Market Place.

    It is just a poor deal for the families, and because they checks are not normal bank checks, they don't seem to be able to use them like a normal checking account.

    Poor taste, bad marketing, not sure if it is really cheating anybody though.

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