(KMOV) – A warning was issued about companies that offer a new way for retirees to get quick cash but can have devastating consequences on pension payments.
The Missouri Treasurer’s Office said companies have started moving into the state which offer cash advances on a pension similar to reverse mortgages.
They are actually unregulated loans that require retirees to turn over all or part of their pension payments to the company which charges sky-high fees.
"You’re talking about retirement benefits, something that someone is solely dependent upon for their survival, something that really risks the retirement security of Missourians in a way that's deeper than anything that we've ever seen,” said Clint Zweifel, Missouri State Treasurer.
He said there is an effort to identify the companies in Missouri that offer pension advances. He is working with the legislature to pass a law to ban advances on public pension plans.