The American Council of Life Insurers (ACLI) commended this week a bill designed to bolster retirement financial security.
ACLI President and CEO Dirk Kempthorne said the Increasing Access to a Secure Retirement Act would offer greater access to annuities while also amending a regulation discouraging employers from offering annuities in retirement plans.
“Unlike pension plans, too few 401(k) plans offer participants the opportunity to secure guaranteed income in retirement,” Kempthorne said. “Annuities act just like a pension in delivering income for life. This bill recognizes the unique role of state insurance departments in oversight of life insurance companies, a role that includes routine reviews of the financial strength of every insurer and the insurer’s ability to meet its commitments.”
Kempthorne said in the wake of employer-based retirement savings plans playing a vital role in helping workers achieve retirement security, the legislation is necessary.
“By providing clear and more certain rules for the selection of an annuity provider, employers will be much more willing to offer annuities in their retirement savings plans,” he said.
Officials said the ACLI is a Washington, D.C.-based trade association with approximately 280 member companies operating in the United States and abroad.
The group advocates in state, federal and international forums for public policy supporting the industry marketplace and the 75 million American families relying on life insurers’ products for financial and retirement security.