The House Ways and Means Committee marks up H.R. 6757 Thursday. (Photo: House Ways and Means)
Life insurance groups say they are happy to see the House Ways and Means CommitteeÂ vote to endorse H.R. 6757Â â€” a package of proposed Internal Revenue Code changes related to retirement savings and other forms of saving.
But the American Council of Life Insurers (ACLI) and the Insured Retirement Institute (IRI) say they want the House to pass more of the provisions included in another retirement savings bill, the Retirement Enhancement and Savings Act (RESA) bill.
(Related:Â House Panel Advances Tax Package)
House Ways and Means members voted 21-14 Thursday to support H.R. 6757 â€” the â€śFamily Savings Act of 2018â€ł bill.
All Republicans who participated voted in favor of the bill. All Democrats who participated voted against it.
H.R. 6757 would:
The MEP provision and the lifetime income portability provision come from the RESA proposal, according to the ACLI.
The ACLI says it believes theÂ version of H.R. 6757 that the House Ways and Means Committee approvedÂ leaves out two key RESA provisions.
One RESA provision left out would encourage retirement plan sponsors to add annuitization options, or arrangements that can convert part or all of a workerâ€™s plan assets into a lifetime stream of retirement income.
The other RESA provision left out would require a retirement plan to give each participant an illustration showing how the participantâ€™s savings would translate into monthly retirement income.
Susan Neely, the ACLIâ€™s new president, said in a statement that the House can and should do more to help Americans prepare for long periods of retirement.
â€śIt can do this by making it easier for employers to offer annuities in their retirement plans,â€ť Neely said in the statement. â€śAnnuities 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.â€ť
IRI President Cathy Weatherford put out a statement praising House Ways and Means Chairman Kevin Brady for his work on H.R. 6757.
â€śWe appreciate Chairman Kevin Bradyâ€™s leadership in advancing this important legislation through the committee,â€ť Weatherford said. â€śHowever, we should not miss this opportunity to do more to significantly boost retirement security.â€ť
Congress should do more toÂ increase workersâ€™ access to products that can provide guaranteed lifetime retirement income, Weatherford said.
â€” ReadÂ Trump Executive Order Leaves Life Insurers Hungry for More,Â on ThinkAdvisor.