A Social Security cost-of-living adjustment could have a small but positive impact on retirement planning.
WASHINGTON, April 17 -- The American Council of Life Insurers issued the following news release:
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.
ACLI's testimony is available on ACLI.comhttp://www.acli.com/Newsroom/News%20Releases/Documents/FINAL%20ACLI%20Statement%20for%20Ways%20and%20Means%20Hearing%20on%20Retirement%20Tax%20Incentives.pdf
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