Washington, D.C. (April 17, 2012) — In a written statement to the House Ways and Means Committee, the American Council of Life Insurers (ACLI) said that reforms to retirement savings policies should build on the strengths of the current retirement system rather than limit opportunities to save. ACLI submitted the statement for a hearing on “Tax Reform and Tax-favored Retirement Accounts.”

“ACLI urges the Committee, first and foremost, to do no harm to the existing retirement system as it is considered in the context of tax reform,” ACLI said. “Policymakers should avoid disrupting a retirement system that works well for most Americans and instead focus on enhancing the system so that it works well for more Americans.”

“ACLI thanks the Members of this Committee for their support of the H.Con.Res. 101 and its statement of support for the current structure of retirement savings tax rules. To date, more than half of this Committee – led by Reps. Gerlach and Neal – support this resolution recognizing the important role that 401(k), 403(b), 457, IRAs, and other current law retirement savings tax rules play in helping Americans build retirement savings.”

In its statement, ACLI highlighted a number of bills that would enhance the current retirement system and help Americans address their retirement security concerns. This includes the “The SAVE Act of 2011” (H.R. 1534), “The Retirement Plan Simplification and Enhancement Act of 2012” (H.R. 4050), and the bipartisan “Lifetime Income Disclosure Act” (H.R. 677, S. 267). Other initiatives include facilitating the use of longevity insurance and inclusion of lifetime income options in retirement plans.

Download ACLI’s testimony (PDF).

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with more than 300 legal reserve life insurer and fraternal benefit society member companies operating in the United States. ACLI members represent more than 90 percent of the assets and premiums of the life insurance and annuity industry. In addition to life insurance and annuities, ACLI member companies offer pensions, 401(k) and other retirement plans, long-term care and disability income insurance, and reinsurance. ACLI's public Web site can be accessed at www.acli.com.