Missouri Bans Pension Advance Practice

Gov. Jay Nixon spoke to a crowd during a Department of Conservation commission meeting at the Tiger Hotel in Columbia on July 8, 2014. Nixon announced the veto of two bills that would reclassify captive deer as livestock, which would transfer oversight of captive population to the state Department of Agriculture. | Austin Huguelet/Missouri Business Alert
Gov. Jay Nixon signed a bill that targets pension advance firms. | Austin Huguelet/Missouri Business Alert

Gov. Jay Nixon signed legislation that makes Missouri the first state in the nation to prohibit so-called pension advances that target teachers, police officers, firefighters and other public employees. The action targets pension advance firms that use the Internet and other marketing tools to pitch deals with high interest rates to those with government, military or corporate pensions.

Here’s how advances work: In exchange for an upfront, lump sum cash payment, pensioners give up all or some of their monthly pension checks for a period of time, often for between five and 10 years.

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