PROPOSED AMENDMENT TO FAMILY SAVINGS ACT WILL BOLSTER RETIREMENT SECURITY

Posted on September 27, 2018

IRI Supports Rep. Brady Amendment

Washington, D.C. – The House Rules Committee today will vote on an amendment to a retirement security bill to make it easier for employers to offer products that provide guaranteed lifetime income to employees. The House of Representatives is expected to vote Thursday on the amended bill.

House Ways and Means Committee Chairman Kevin Brady (R-Texas) is offering the amendment to the Family Savings Act, HR 6757, which passed his committee last week.

“We applaud Chairman Brady’s leadership in offering this amendment to help Americans gain greater access to guaranteed lifetime income products,” said Cathy Weatherford, president and CEO, Insured Retirement Institute (IRI).  “We urge all House members to vote in favor of the amendment.”

The Family Savings Act will help to increase access to employer-provided retirement plans by eliminating barriers which restricts the types of small business employers who are permitted to band together to offer a retirement plan through a Multiple Employer Plan (MEPs).

Chairman Brady’s amendment will improve access to guaranteed lifetime income solutions like annuities by making it easier for employers to offer such products to their employees and ensuring that retirement plan participants can better preserve the lifetime income protections they have accumulated over the years.

According to recent research, less than 10 percent of workplace plans currently offer annuities, 92 percent of plan sponsors want a workable annuity provider selection safe harbor, and 81 percent of GenXers say they would like to have an option to take a portion of their retirement savings as a guaranteed monthly income at retirement.

IRI said it will continue to advocate for additional retirement security provisions in the Senate. Such provisions include providing retirement plan participants with a projection of how current savings would translate into an income in retirement; simplifying the filing of IRS Form 5500 to help small employers save on retirement plan administrative costs; and including proposed enhancements to automatic enrollment and contribution escalation features in retirement plans.

“We have an extraordinary opportunity to enact comprehensive retirement security legislation this year,” Weatherford said. “We look forward to continuing to work with Chairman Brady and with the Senate to complete a bill before Congress adjourns."



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Dan Zielinski
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