Another provision would help insurers offer QLACs designed to provide retirement income for couples.
Section 203 of HR 2954 would eliminate the regulatory conflicts that now prevent insurers from adding ordinary exchange-traded funds to variable annuity fund menus.
Life insurance and financial services groups are celebrating the House’s bipartisan vote in favor of HR 2954, at a time when disagreements between Republicans and Democrats are blocking the passage of other high-profile bills.
Susan Neely, President of American Council of Life Insurerssaid the implementation of Secure Act 2.0 would build on the changes made by the Secure Act.
The bill “could help even more people achieve a financially secure retirement by reducing barriers to long-term savings and workplace retirement plans, as well as increasing lifetime income options for all Americans,” Neely said.
Lawrence Holzberg, President of the National Association of Insurance and Financial Advisorsurged the Senate to continue work on its own version of the Secure Act 2.0 bill.
The House version “is making positive progress in helping more Americans prepare for retirement,” Holzberg said. “Provisions that make it easier for plans to offer lifetime income options, such as annuity products, will provide savers and the planning professionals they work with greater flexibility in creating plans to achieve specific planning objectives.
NAIFA members will speak to their senators about the Secure Act 2.0 bill when they travel to Washington for the NAIFA Congress on May 24, Holzberg said.
Marc Cadin, CEO of finsecasaid he was optimistic about the enactment of HR 2954 this year.
“The #1 question our members hear from many of the clients they serve is, ‘Am I ready for retirement?’ Cadin said. “Today, Congress took a key step in offering additional tools to help more Americans be prepared.”
Wayne Chopus, President of the Institute for Insured Pensionssaid supporting the passage of the Secure Act 2.0 bill was one of IRI’s primary public policy goals.
“The bipartisan legislation will provide measurable benefits to American workers and retirees who worry about whether they will have sufficient retirement income that will last through their golden years,” Chopus said.
Chopus said he thinks a version of the bill will make it to President Joe Biden’s desk this year.
(Image: United States House)