ACLI’s statement for the record at the House Education and the Workforce Committee hearing, “Reviewing the President’s Fiscal Year 2016 Budget Proposal for the Department of Labor,” stressed that the DOL’s fiduciary rules must not lead to a decrease in much needed financial guidance and education for workers and retirees. 

“ACLI member companies and their representatives are at the forefront of helping people save for retirements that may last decades and providing guaranteed lifetime income that supplement Social Security,” ACLI said. “Seniors need the income protection life insurers provide. Many people first learn of the benefits of annuities and other guaranteed lifetime income products from a life insurance agent or broker. A rational response to ambiguous and broad rules that could lead to large liabilities is for financial service professionals to forego meaningful educational activities.

”We share the DOL’s interest in seeing that plans, plan participants, and individual retirement account (IRA) owners who seek out and are promised advice that is impartial and disinterested ultimately receive advice that adheres to the rigorous standards imposed by Employee Retirement Income Security Act (ERISA),” ACLI added. “In pursuit of this objective, however, the DOL must be careful not to interfere with investment sales and distribution practices that are customary in the marketplace, well understood, and commonly relied upon by financial services providers, plans, plan participants, and IRA owners alike.” 

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.