July 15, 1999

HOLOCAUST ASSETS RESTITUTION --- LEGISLATION/SWISS BANK SETTLEMENT

ACTION RECOMMENDATIONS

  • Urge members of Congress to co-sponsor legislation to exempt Holocaust survivors and heirs from federal tax on restitution payments (H.R.390; H.R.1292; and S.779).

  • Urge Representatives to co-sponsor the Nazi Benefits Termination Act (H.R.1788).

  • Publicize deadlines and other information pertaining to Swiss bank class action notification and settlement process, as you deem appropriate in your communities.

 

LEGISLATION

Tax-Exemption bills

Several bills pertaining to Holocaust-related matters are pending before the U.S. Congress. Three bills (H.R.390; H.R.1292; S.779) were introduced earlier this year that would, in various forms, require that restitution to Holocaust survivors or their heirs be exempt from federal income tax. These bills would ensure that all survivors receive the full compensation they are due, thereby particularly benefiting elderly claimants who live on fixed incomes. Similar bills have been passed or are under consideration in state legislatures around the country. (See enclosed Boston Globe editorial and Chicago Tribune article).

Nazi Benefits Termination Act

In May, the Nazi Benefits Termination Act (H.R.1788) was introduced in the House. This legislation will enable the Attorney General to initiate proceedings to terminate Federal public benefits payments, such as Social Security, to certain participants in Nazi persecutions. The bill will affect both deportable individuals in the U.S. and participants in Nazi activities who have already fled the U.S., preventing these individuals from collecting U.S. benefits. The legislation requires the Department of Justice to conclusively prove that the accused individual assisted in Nazi persecutions before suspending benefits. The Social Security Administration reports that eight Nazi persecutors have collected over $700,000 in Social Security benefits, despite their relocation abroad. This legislation has received the careful attention and support of several New Jersey based CRCs, particularly Central New Jersey and MetroWest.

Other Bills

  • The Justice for Holocaust Survivors Act, H.R.271, would allow U.S. citizens who have not received other forms of reparations to sue the German government for personal injury and/or other damages accrued during WWII.

  • The Holocaust Victims Insurance Act, H.R.126, would require U.S. insurance companies to reveal all Holocaust beneficiaries whose policies were purchased between 1920-1945.

We believe that the Nazi Benefits Termination bill and the tax exemption bill are most likely to move forward during the next several months.

SWISS BANK SETTLEMENT

You will recall that last summer, the major private Swiss banks agreed upon a $1.25 billion settlement to resolve outstanding Holocaust-era claims. The settlement stemmed from a class-action suit filed by survivors and heirs in the U.S. District Court for the Eastern District of New York. Pursuant to court order and procedures, a world-wide campaign is now underway to notify potential claimants in more than 100 countries of the class action suit and the pending settlement, through newspaper advertisements, direct mail, outreach to Jewish organizations, and other mechanisms.

In order for survivors to eventually receive payments from the settlement they must complete a 5-page questionnaire that will be made available through a variety of sources. The questionnaire will help the Court obtain information about class members and their potential claims against Swiss entities. The form is accompanied by detailed information sheets that explain the nature of and rules governing this class-action suit.

Potential claimants may obtain copies of these documents by phoning a toll-free number, 1-888-635-5483, or by accessing a web-site that has been established in seven languages, www.swissbankclaims.com. Please note that the deadline for submission of forms is October 22, 1999. Those survivors and heirs who wish to "opt out" of the class action (in order to preserve their right to pursue individual lawsuits against the defendants) must notify the court in writing by October 22, 1999 as well. Further information on opting out is available in the notification packet. The Court advises that even if a person is unsure whether he or she has a claim against a Swiss entity, the questionnaire should be completed, in order to preserve one's rights in the settlement of this litigation.

The web-site includes the following information:

  • Description of the five qualifying Classes;
  • Deadlines and key dates;
  • An initial five page questionnaire form;
  • A notice explaining the details of the litigation process.

Not all Holocaust survivors will qualify as members of any "class" in the Swiss bank suit. The following are the classes of individuals who may qualify for compensation:

  • Deposit Assets Class - Anyone who had assets (including bank accounts, securities and safe deposit box contents) on deposit in any Swiss bank, investment fund, or other custodian prior to May 9, 1945.

  • Looted Assets Class - An individual may have claims against private Swiss entities pertaining to assets that were looted or taken by the Nazi regime, or relating to assets disguised by a Swiss entity for the benefit of an Axis company, organization, or person associated with the Nazi regime, between 1933-1946.

  • Slave Labor Class I - Any person who performed slave labor for companies or other entities that may have deposited the revenues or proceeds of that labor with or transacted such revenue and proceeds through Swiss entities.

  • Refugee Class - Anyone who was denied entry into Switzerland to avoid Nazi persecution, or after gaining entry was deported or mistreated, and may have related claims against any Swiss entity.

  • Slave Labor Class II - All persons, whether or not a victim or target of Nazi persecution as previously defined, who were forced to perform slave labor in any facility or work site, wherever located, that was owned, controlled or operated by any Swiss company or any other entity.

Despite the fact that the notification process has begun, it is important to keep in mind that the settlement itself has not received final court approval. Therefore, final monetary allocations still have not been determined. On November 29, 1999 an open hearing will be held in the Eastern District federal court to determine if the proposed settlement should be approved. Reports indicate that should the settlement be approved, payments can be expected as early as mid-2000.

CRCs may wish to publicize the October 22nd deadline, the toll-free number and information about the Internet site within their communities, in order to ensure that these details reach as many survivors as possible. Last year, in the weeks following the deadline for submission of applications to the Swiss Humanitarian Fund (which allocated approximately $500 each to needy Holocaust survivors), we understand that CRCs received numerous calls from individuals who unfortunately had missed the opportunity to file their papers and receive payments to which they were entitled.

Please feel free to contact Kalanit Oded should you have any questions or require further assistance.