House Bill Falls Short of Retirement Security Reforms, ACLI Says

WASHINGTON, Sept. 13 -- The American Council of Life Insurers issued the following statement by President and CEO Susan Neely on the Family Savings Act (H.R. 6757), which was approved by the House Ways and Means Committee:

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"The Family Savings Act of 2018 (H.R. 6757) approved today 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.

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American Council of Life Insurers (ACLI) advocates on behalf of 290 member companies dedicated to providing products and services that promote consumers' financial and retirement security. 90 million American families depend on our members for life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, dental and vision and other supplemental benefits. ACLI represents member companies in state, federal and international forums for public policy that supports the industry marketplace and the families that rely on life insurers' products for peace of mind. ACLI members represent 95 percent of industry assets in the United States.

To learn more, visit acli.com and our blog, ACLI Perspectives, at acli.com/perspectives.