Washington, D.C. (December 19, 2013) – ACLI welcomes the Government Accountability Office (GAO) report: 401(k) PLANS - Other Countries’ Experiences Offer Lessons in Policies and Oversight of Spend-down Options. This study makes an important contribution to the research on ways to boost Americans’ retirement security.

More than 70 million Americans are saving for their retirement through 401(k) or other defined contribution (DC) plans. Most DC plans in the U.S. offer only lump sum distributions to new retirees, putting some participants at risk of outliving their savings. GAO researched six countries with established DC systems (Australia, Canada, Chile, Singapore, Switzerland, and the United Kingdom) and found they give their citizens opportunities to receive guaranteed lifetime income upon retirement through programmed withdrawals and annuities. In these countries, the report notes that employers are not expected to assess an annuity provider’s ability to make future payments before contracting with them to offer an annuity through their plans. These countries generally rely on insurance regulations and industry standards to oversee and monitor insurance companies.

GAO recommends that the U.S. Treasury Department and the U.S. Department of Labor consider other countries' methods in helping America’s 401(k) plan sponsors provide a better variety of retirement income options for participants. ACLI has long supported measures to provide more guaranteed income options in plans to better help Americans prepare for their retirement security.

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.