ROA President RADM Paul Kayye, USN (Ret.) met last week with Mark B. Grier, Vice Chairman of Prudential Financial at the ROA's Minuteman Memorial Building. Prudential has faced charges in a series of articles published by Bloomberg News over how it administers its account for survivors of serving members who are killed in the line of duty. Servicemember's Group Life Insurance (SGLI) pays up to $400,000 and pay-out is administered by Prudential. Survivors are offered an option to keep the money in an account for the short term that is accessible by writing draft checks. This money is insured by state insurance plans for at least $250,000 and up to $500,000.
Bloomberg published an account of a SGLI beneficiary who had a draft check refused by a merchant, and challenged what appeared to be low interest rates paid on the money by Prudential. Vice Chairman Grier demonstrated to ROA that the interest rates were within the range of what is paid by banks and credit unions on checking and money market accounts, and that most beneficiaries withdraw the majority of their money within 90 days after getting the service member's estate in order. ROA's Executive Director, MG David Bockel, USA (Ret.) joined the president in the meeting with Prudential.
Read Prudential's press release about addressing concerns with the Department of Veterans Affairs