Count the American Council of Life Insurers (ACLI) among fans of the SECURE 2.0 Act of 2022, the landmark retirement reform legislation package passed by Congress last week as part of the $1.7 trillion omnibus spending bill.
ACLI released a statement recently from President & CEO Susan Neely on “SECURE 2.0” and the Registration for Index-Linked Annuities (RILA) Act, which was also approved by Congress as part of the 2023 spending package.
Neely said members of Congress made a real difference in the lives of millions of workers in need of a pathway to retirement savings.
“Legislation included in the 2023 omnibus spending package addresses gaps that have left some people on the sidelines of retirement savings, unable to access the workplace retirement plans that do so much good in establishing the capability and habit of savings,” Neely said. “Part-time workers, military spouses, small business employees, and student loan borrowers are just a few who will benefit and have a better chance of positioning themselves for a more financially secure retirement as a result of Congress’s action.”
Based on analysis of a revenue estimate of the legislation by the Joint Committee on Taxation, ACLI found that the bill would significantly increase savings over 10 years for specific groups of Americans.
“Key provisions also enhance the rules for annuities, helping more and more Americans secure lifetime income in retirement. As leading providers of these and other retirement solutions, like IRAs, 401(k)s, 403(b)s and more, life insurers have long backed policies that help people plan for their financial futures,” Neely added. “That is why we focused our full advocacy infrastructure on the bill’s passage, which included leading a coalition of financial service associations that support the bill.”
Dubbed SECURE 2.0, the legislation builds upon the SECURE Act that was enacted in 2019. It combines key elements from bipartisan House and Senate legislation championed by Sens. Ben Cardin (D-MD), Rob Portman (R-OH), Ron Wyden (D-OR), Mike Crapo (R-ID), Patty Murray (D-WA) and Richard Burr (R-NC) and House Ways and Means Committee Chairman Richie Neal (D-MA) and Ranking Member Kevin Brady (R-TX).
“The omnibus package also contains the Registration for Index-Linked Annuities (RILA) Act, sponsored by Sens. Tina Smith (D-MN) and Thom Tillis (R-NC) and Reps. Alma Adams (D-NC) and Anthony Gonzalez (R-OH). The bill will help consumers make informed and knowledgeable decisions when considering a registered index linked annuity,” Neely said. “It directs the SEC to design a new RILA specific form that ensures consumers receive the information they need. Moreover, by reducing unnecessary regulatory barriers that hinder product development, the bill will help bring new and innovative options for consumers preparing for retirement.”
Neely concluded by thanking the retirement security leaders who sponsored these measures and all members of Congress for their commitment to bolstering Americans’ savings.
ACLI is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. ACLI’s 280 member companies represent 94% of industry assets in the United States.