Trade Group Wants Annuity Tax Deferrals Maintained
January 22, 2015 by Ted Knutson
The Insured Retirement Institute, the largest annuity trade group, laid out its 2015 “wish list” for Congress and federal agencies Tuesday.
Highest up on IRI’s lobbying priorities is to encourage retirement savings by keeping tax deferrals for annuities.
IRI is also planning efforts to have Congress tweak the tax code to make annuities portable when workers change jobs and to keep the Department of Labor from proposing a fiduciary rule that could stifle the industry.
The Department of Labor is currently considering making changes to the definition of “fiduciary” that would prevent consumers from accessing retirement planning services through full-service brokerage accounts, according to the group.
“We are going to be very vocal on this,” said IRI President and CEO President Cathy Weatherford.
While DOL is developing fiduciary guidelines, the agency has not given any details on what they will contain.
Another goal IRI has for its Labor Department lobbying is to have the agency enact plans for requiring lifetime income estimates on workers’ benefit statements.so they know much monthly income their nest egg will generate in retirement.
In its other Washington aims for 2015, IRI said it wants Congress to allow multiple employer pension plans to offer annuities and to increase the required minimum age proceeds from annuities must be distributed to at least 75 from the current 70½ to aid prospective buyers who are concerned about outliving their retirement savings.
The group noted the 70½ threshold was set over 50 years ago when life expectancies were shorter.
IRI also wants the Securities and Exchange Commission to follow-through on plans to propose rules for a variable annuity summary prospectus in the first quarter of this year.
“A variable annuity summary prospectus and annual update would improve consumers’ understanding of their investment choices through more streamlined disclosures and facilitate better decision-making regarding lifetime income options,” IRI said.
