American Council of Life Insurers President and CEO Susan Neely issued the following statement today on retirement security provisions included in “Tax Reform 2.0”:
WASHINGTON, D.C., (September 10, 2018)—"The American Council of Life Insurers (ACLI) lauds House Ways and Means Committee Chairman Kevin Brady (R-Texas) for including retirement security provisions in ‘Tax Reform 2.0’ legislation introduced today.
“The retirement security provisions address some key challenges facing retirement savers, which include saving enough for retirement and ensuring retirement savings can last a lifetime.
“More needs to be done by Congress, but Chairman Brady’s initiative represents a good first step.
“His bill is consistent with President Trump’s recent executive order in that it encourages small employers to join together to take advantage of economies of scale to offer workplace retirement plans. This could go a long way to helping the 16 million independent contractors in the gig economy. Many of these independent contractors work for small employers who often lack the resources to offer retirement plans to their employees on their own.
“Another part of the bill aims to continue lifetime income protections for savers who participate in plans undergoing changes.
“These provisions are part of the Retirement Enhancement and Savings Act (RESA), a widely-supported bipartisan measure. But Tax Reform 2.0 excludes many other important RESA provisions that would go even further toward addressing Americans’ retirement security concerns.
“We urge Congress to support additional reforms that would make it easier for small employers to offer annuities in their retirement plans. Annuities can guarantee lifetime income and can help employers offer a plan that resembles in certain ways a traditional pension that guarantees a paycheck for life to a retiree.
“ACLI also urges adoption of a RESA provision that would ensure all workers receive an illustration of how their retirement savings translates into monthly income.
“Adding these and other RESA provisions into legislation that moves through Congress would upgrade the successful private-sector retirement system to ensure as much access to retirement products for as many people as possible.”
A summary of RESA’s key provisions is available on www.acli.com.
The American Council of Life Insurers (ACLI) advocates on behalf of 290 member companies dedicated to providing products and services that promote consumers’ financial and retirement security. 90 million American families depend on our members for life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, dental and vision and other supplemental benefits. ACLI represents member companies in state, federal and international forums for public policy that supports the industry marketplace and the families that rely on life insurers’ products for peace of mind. ACLI members represent 95 percent of industry assets in the United States.
To learn more, visit acli.com and our blog, ACLI Perspectives, at acli.com/perspectives.
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