ACLI Lauds Senate for Passing Partial Annuitization Proposal

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September 16, 2010 Thursday 6:34 AM EST

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ACLI Lauds Senate for Passing Partial Annuitization Proposal

Targeted News Service

WASHINGTON

The American Council of Life Insurers issued the following news release:

"ACLI applauds the Senate for approving the partial annuitization provision included in the Small Business Lending Fund Act (H.R. 5297). The provision will go a long way to help Americans meet their individual retirement income goals, and ACLI appreciates the work of Senate Finance Committee Chairman Max Baucus (D-MT) and Sen. John Kerry (D-MA) in championing this provision.

"The provision simplifies the process for non-qualified annuity owners to annuitize a portion of their annuity contract while allowing the remaining amount to grow tax-deferred. Currently, annuity owners can partially annuitize their contracts but have to go through a cumbersome process to do it. This involves exchanging their annuity contract for two and then annuitizing one of the new contracts. The partial annuitization provision simplifies this two-step process by allowing the individual to receive annuity payments from a portion of their contract in one step.

"Originally proposed by Rep. Earl Pomeroy (D-ND) and Ginny Brown-Waite (R-FL) as part of the Retirement Security Needs Lifetime Pay Act (H.R. 2748), partial annuitization provides additional flexibility to a product that is playing a crucial role in helping Americans achieve retirement income security."

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September 17, 2010

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