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.”