Washington, D.C., (January 29, 2015) – The American Council of Life Insurers (ACLI) commends Sens. Susan Collins (R-Maine) and Bill Nelson (D-Fla.) for reintroducing the “Retirement Security Act of 2015 (S. 266),” a bill that would greatly expand the ability of Americans to better save for their retirement. ACLI also applauds similar legislation in the House (H.R. 557) introduced by Reps. Vern Buchanan (R-Fla.) and Ron Kind (D-Wis.).

Americans have many savings options when planning for retirement including IRAs, annuities and employer-based retirement plans. ACLI supports proposals that will bolster the nation’s voluntary, private retirement plan system and will help encourage small businesses to sponsor retirement savings plans for their employees.

The “Retirement Security Act of 2015” would help facilitate the use of private multiple employer plans, where many small businesses can join together to achieve economies of scale and advantages with respect to plan administration and investment services, making plans much more affordable and effectively managed. The legislation would encourage greater use of auto-enrollment and auto-escalation features and would allow employers to use a “stretch match,” which encourages greater employee saving to receive matching contributions from employers. Also, the bill would expand tax incentives for small businesses to offer retirement plans, an important consideration for many employers. Moreover, the legislation would make it easier for more individuals to access the Savers' Credit, helping low-income workers maximize their savings.

These valuable reforms will help to improve a system already important to millions of Americans. ACLI looks forward to working with Sens. Collins and Nelson, Reps. Buchanan and Kind, and other members of Congress to develop constructive solutions that will help Americans reach a secure and prosperous retirement.

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 300 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing more than 90 percent of industry assets and premiums. Learn more at www.acli.com.