Bipartisan Senate Proposal Builds Momentum to Help More Americans Save for Retirement

WASHINGTON, Dec. 19 -- The American Council of Life Insurers issued the following statement:

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American Council of Life Insurers (ACLI) President and CEO Susan Neely made the following comments on retirement savings legislation introduced today by Senate Finance Committee Chairman Chuck Grassley (R-IA), Senator Maggie Hassan (D-NH), and Senator Jim Lankford (R-OK):

"The Improving Access to Retirement Savings Act of 2020 includes key provisions, supported by the ACLI, that work with current efforts to expand retirement security and will have real-world positive implications for savers. Expansion of Open Multiple Employer Plans to include 403b accounts, the creation of the safe harbor for correcting employee deferrals and the clarification for small businesses who wish to utilize a credit to offer a retirement plan to their employees, are all key components of the bill that will build on and strengthen the current system.

"Senators Grassley, Hassan and Lankford are building momentum to help Americans address the retirement security challenges that have been made worse by the pandemic. Their leadership on this bill builds on the 2019 SECURE Act and complements other pending proposals to protect and expand access to savings opportunities and lifetime income solutions for all Americans regardless of how and where they work, their life stage, or the economic status of their household.

"ACLI will work to advance the Grassley-Hassan-Lankford proposal and other important bipartisan initiatives. That includes the Retirement Security and Savings Act introduced by Senators Rob Portman (R-OH) and Ben Cardin (D-MD), and the Securing a Strong Retirement Act of 2020, introduced by U.S. House Ways and Means Committee Chairman Richie Neal (D-MA) and Ranking Member Kevin Brady (R-TX). Together, these measures work to help working Americans nationwide rebuild after COVID and strengthen their financial security with greater retirement savings."

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December 18, 2020

To: Honorable Chuck Grassley, Chairman, Committee on Finance, U.S. Senate, 135 Hart Senate Office Building, Washington, D.C. 20510

Honorable Maggie Hassan, Committee on Finance, U.S. Senate, 324 Hart Senate Office Building, Washington, D.C. 20510

Honorable James Lankford, Committee on Finance, U.S. Senate, 316 Hart Senate Office Building Washington, DC 20510

Dear Chairman Grassley, Senators Hassan and Lankford:

On behalf of the American Council of Life Insurers (ACLI), thank you all for championing solutions for workers' retirement savings and for the introduction of the Improving Access to Retirement Savings Act of 2020. We appreciate your continued support, work and leadership to advance retirement security policies.

We appreciate that expanding retirement security is a critical mission. Ninety million American families rely on our industry's products for financial protection and retirement security. As society changes and the way Americans work and live continues to evolve, life insurers are committed to solutions that protect all Americans, regardless of where and how they work, their life stage, or the economic status of their household. Insurance companies seek to expand the availability, accessibility, and affordability of products and services that provide greater financial certainty for all.

Continued action to improve access to retirement savings opportunities is timely and necessary, especially in light of the impact that COVID-19 has had upon savers. Now more than ever, thoughtful public policy is essential to help Americans save for retirement. Your Improving Access to Retirement Savings Act of 2020 does just that. It includes key provisions, supported by the ACLI, that build upon current retirement security policy efforts and will have real-world positive implications for savers. Expansion of Open Multiple Employer Plans to include 403(b) accounts, the creation of the safe harbor for correcting employee deferrals and the clarification for small businesses who wish to utilize a credit to offer a retirement plan to their employees, are all key components of the bill that will build on and strengthen the current system.

Again, thank you for your leadership with the Improving Access to Retirement Savings Act of 2020. We look forward to continued collaboration on this legislation, as well as on other retirement security policy proposals.

Sincerely,

Susan K. Neely, President & CEO