Veterans Agency Made Secret Deal Over Benefits
In yet another sign of putting the interests of corporations and profits ahead of a sense of fairness and equity, allegations are surfacing that Prudential Insurance Company is seeking to profit off of dead American service members. Recently released documents appear to confirm that The Veterans Administration and the Prudential Insurance Company has altered the terms of agreement that require lump sum payments to survivors of fallen US soldiers when requested by beneficiaries. The change to the terms of the original agreement were verbally approved by both parties in 1999.
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.
Most Recommended Comment
New York, United States