ACLI Vice President & Deputy, Retirement Security James Szostek issued the following statement on the Labor Department’s report to Congress on 95-1, its “Safest Available Annuity” interpretative guidance:

“The Labor Department’s report wisely refrains from recommending any immediate regulatory changes. If any changes are to be made, the Department said it would be through a public notice and comment process.

“The report validates what ACLI and many other stakeholders have suggested -- that the Department’s 1995 guidance on pension risk transfer arrangements has performed well for decades and remains relevant today.

“Separate from today’s report, the data shows little to no risk to traditional pension plan participants under a pension risk transfer. Over the past 30-plus years, no one has lost a penny who has been receiving an annuity as a result of a pension risk transfer arrangement.  At the same time, a very limited PBGC study showed $8.5 billion of traditional retirement plan participant losses.”

The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 275 member companies represent 93 percent of industry assets in the United States.

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