Missouri officials to investigate 'pension advances'

Wednesday, September 18, 2013 | 6:54 a.m. CDT; updated 9:50 a.m. CDT, Wednesday, September 18, 2013

JEFFERSON CITY — Missouri Treasurer Clint Zweifel is raising concerns about deals in which retirees are signing over future pension checks to get quick cash.

Zweifel said the deals typically involve an upfront, lump-sum payment to a person under a contract in which the business gets a portion of the person's future pension payments. The deals often carry consumer fees.

Attorney General Chris Koster said he plans to join Zweifel in an investigation of such practices.

Zweifel said he will work with lawmakers next year on a bill that would prohibit businesses from offering cash advances in exchange for a person's future public pension payments. The bill would cover state, city, fire, police and teacher pensions.

He said a federal law already prohibits such arrangements for military pensions.

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