What The SECURE Act Means For Annuities
December 11, 2019 by Ben Mattlin
Last May, the U.S. House of Representatives passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act by a whopping 417 to 3. If it passes in the Senate (expected by year-end), many annuity providers will be celebrating.
“The SECURE Act will make it easier for employers to offer as part of their retirement plans annuities that provide a guaranteed stream of lifetime income,” says Kathleen Coulombe, vice president of retirement security and federal relations at the Washington, D.C.-based American Council of Life Insurers.
Including annuities within retirement plans isn’t without controversy. “At present, employers must either hire a costly financial expert to audit an annuity provider’s books or figure out for themselves whether an insurer can deliver on its promises,” Coulombe says. “What’s new in SECURE is that employers will be able to rely on the experts—i.e., state insurance departments—to ensure that life insurers will be there now and in the future.”
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