Washington, D.C. (June 12, 2013) — The American Council of Life Insurers (ACLI) issued the following statement on introduction of the Lifetime Income Disclosure Act:
“Bipartisan legislation introduced in Congress today would give workers an important new retirement income planning tool and help boost retirement security.
“Under the Lifetime Income Disclosure Act, participants in workplace retirement plans would receive an annual statement of how their lump-sum savings translate into a lifetime stream of monthly income. This vital information would make it easier for workers to understand how their savings will address their month-to-month living expenses.
“ACLI is proud to endorse the Lifetime Income Disclosure Act. It represents a major step forward in helping workers address their retirement security needs. More and more Americans can look forward to spending 20, 30 or more years in retirement. Careful planning is necessary to assure that retirees enjoy the peace-of-mind and dignity they deserve when their working days are over.
“Effective planning means that workers must understand how their lump-sum savings will address their regular monthly expenses—such as housing, food, utilities and medical services—over the entire course of their lives. With the information provided by the Lifetime Income Disclosure Act, planning will be much easier.
“The legislation was introduced in the Senate by Sens. Johnny Isakson (R-Ga.), Christopher Murphy (D-Conn.), Tim Scott (R-S.C.), Bill Nelson (D-Fla.) and Elizabeth Warren (D-Mass.). The companion bill, H.R. 2171, was previously introduced in the House by Reps. Rush Holt (D-N.J.), Tom Petri (R-Wisc.), Ron Kind (D-Wisc.) and Dave Reichert (R-Wash.). ACLI thanks the sponsors for their efforts to boost retirement security.
“The Department of Labor is seeking public comment on a similar initiative. ACLI is reviewing the Department’s draft proposal and looks forward to providing comments to DOL.
“Taken together, the Lifetime Income Disclosure Act and the DOL draft proposal show there is tremendous momentum behind efforts to give retirement plan participants a leg up in their retirement planning. ACLI strongly supports these efforts.”
The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with more than 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.