Senate Passes RILA Annuity Bill

The full Senate late Tuesday passed S. 3198, the Registered Index-Linked Annuities Act, which directs the Securities and Exchange Commission to develop a registration form designed for RILA products within 18 months after enactment of the act.

The House Financial Services Committee approved companion legislation H.R. 4865, the Registration for Index-Linked Annuities Act, on July 28 by a unanimous vote.

The bill “will improve consumer access to innovative lifetime income solutions that help protect against the possibility of outliving savings during retirement,” the Insured Retirement Institute said Tuesday in a statement. “The RILA Act will eliminate the most significant impediment now constraining insurers from issuing RILAs as well as consumers’ use of RILAs.”

In addition, the bill “would direct the SEC to promulgate a new form to replace the largely inapplicable forms annuity issuers currently are required to use when filing RILAs with the Commission,” IRI said.