Ways And Means Committee Legislation Falls Short Of Needed Retirement Security Reforms

American Council of Life Insurers President and CEO Susan Neely issued the following statement on The Family Savings Act (H.R. 6757) approved by the House Ways and Means Committee:

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American Council of Life Insurers

Sep 14, 2018, 10:15 ET

WASHINGTON, Sept. 14, 2018 /PRNewswire/ -- "The Family Savings Act of 2018 (H.R. 6757) approved by the House Ways and Means Committee falls short of what is needed to help address challenges facing America's retirement savers.

"The House of Representatives can—and should—do more to help Americans preparing for retirements that could last 20 years, 30 years or longer. It can do this by making it easier for employers to offer annuities in their retirement plans. Annuities can guarantee lifetime income for workers. They can help employers offer a plan that resembles in certain ways a traditional pension that guarantees a paycheck for life to a retiree.

"The House should also advance consumer financial education by ensuring workers receive an illustration of how their retirement savings translates into monthly income.

"The bipartisan and widely supported Retirement Enhancement and Savings Act (RESA) includes these and other retirement security measures that would help Americans save for retirement and ensure they have access to protected lifetime income.

"We are pleased that the Ways and Means Committee included two RESA provisions in H.R. 6757. They would encourage small employers to join together to take advantage of economies of scale to offer workplace retirement plans and continue lifetime income protections for savers who participate in plans undergoing changes. It's imperative the House builds on these initial steps to enact meaningful reforms that help even more retirement savers.

"The American Council of Life Insurers urges the House to include RESA in a final retirement package that 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.

SOURCE American Council of Life Insurers