Wednesday, March 1, 2017
GAO Report Highlights Value of Annuities in 401(k) Plans
American Council of Life Insurers President and CEO Dirk Kempthorne issued the following statement on a new Government Accountability Office report on steps the Department of Labor can take to improve lifetime income product options for 401(k) plan participants:
Washington, D.C. (September 9, 2016) –“As representatives of an industry that offers retirement savings and income solutions, the American Council of Life Insurers (ACLI) welcomes a new report from the Government Accountability Office (GAO) that includes specific recommendations to the Department of Labor to help encourage plan sponsors to offer lifetime income products like annuities.
“The GAO report, titled ‘401(K) PLANS: DOL Could Improve Use of Lifetime Income Options’, identifies administrative and legal deterrents that are preventing many employers with 401(k) plans from offering annuities as a payout option. It recommends the Department of Labor make several policy changes to eliminate these barriers so that workers’ savings can last throughout retirement.
“The GAO report demonstrates growing recognition among policymakers of the need for annuities that provide Americans with a personal pension. Every day until 2030, 10,000 baby boomers will reach age 65. Without the guaranteed lifetime income that annuities provide, many will be unprepared for retirements that could last 20, 30 years or more.
“As policymakers discuss the GAO report’s recommendations, ACLI welcomes the opportunity to work with them to find solutions that help Americans retire with peace of mind.”
The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 280 member companies operating in the United States and abroad. ACLI advocates in state, federal, 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 95 percent of industry assets. Learn more at www.acli.com.
Date Posted: March 1, 2017
Document ID: NR16-035