Bill That Could Boost Lifetime Annuity Use Sails Through House

Another provision would help insurers offer QLACs designed to provide retirement income for couples.

Section 203 of H.R. 2954 would eliminate regulatory conflicts that now keep insurers from adding ordinary exchange-traded funds to variable annuity fund menus.

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Life insurance and financial services groups are celebrating the bipartisan House vote in favor of H.R. 2954, at a time when disagreements between Republicans and Democrats are blocking passage of other high-profile bills.

Susan Neely, president of the American Council of Life Insurers, said implementing 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 saving and workplace retirement plans, along with increasing lifetime income options for all Americans,” Neely said.

Lawrence Holzberg, president of the National Association of Insurance and Financial Advisors, urged the Senate to move ahead with work on its own version of the Secure Act 2.0 bill.

The House version “makes positive strides towards helping a greater number of Americans prepare for retirement,” Holzberg said. “The provisions making it easier for plans to offer lifetime income options, such as annuity products, will provide retirement savers, and the planning professionals they work with, greater flexibility to create plans to meet specific planning goals.”

NAIFA members will talk to their senators about the Secure Act 2.0 bill when they come to Washington for NAIFA’s Congressional Congress on May 24, Holzberg said.

Marc Cadin, CEO of Finseca, said he’s optimistic that H.R. 2954 will be signed into law this year.

“The No. 1 question our members hear from many of the clients they serve is, ‘Am I prepared for retirement?’” Cadin said. “Today, Congress took a key step forward in offering additional tools for more Americans to be prepared.”

Wayne Chopus, president of the Insured Retirement Institute, said supporting passage of the Secure Act 2.0 bill has been one of IRI’s primary public policy objectives.

“The bipartisan legislation will deliver measurable benefits to America’s workers and retirees who have anxiety over whether they will have sufficient retirement income that lasts throughout their golden years,” Chopus said.

Chopus said he thinks a version of the bill will reach President Joe Biden’s desk this year.

(Image: U.S. House)