AALU Announces Support of Proposal to Boost Retirement Savings

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March 27, 2019                                                                                                                                              (703) 641-8142

AALU Announces Support of Proposal to Boost Retirement Savings
Says bill, coupled with RESA legislation, are key steps to helping more Americans better save for retirement

WASHINGTON, D.C. – AALU CEO Marc Cadin today announced the organization’s strong support of a proposal by House Ways and Means Chairman Richard Neal (D-Mass.) that would enhance the opportunity for more Americans to save for retirement by requiring most employers to offer retirement savings plans for their employees. The legislation has been introduced in the previous Congress and is expected to be re-introduced in 2019.

“Americans are not saving enough for a retirement that could last decades,” Cadin said “We can do more to help them. This proposal will improve the long-term financial security of the American people by offering private-sector solutions that would help more Americans adequately prepare for retirement. AALU thanks Chairman Neal for his leadership on this issue, and we look forward to working together to enhance the workplace savings system that encourages hardworking Americans to save and helps close the retirement savings gap.”

The Automatic Retirement Plan Act, as it was known in the previous Congress, would require employers with more than ten employees to provide a payroll deduction for savings into a retirement savings plan, such as a 401(k) or an IRA. It also would provide tax credits for employers to minimize costs of starting a plan and would provide important exemptions for certain employers, such as governments, churches, and new businesses.

In addition to the Automatic Retirement Plan Act, AALU has long advocated in support of the Retirement Enhancement and Savings Act (RESA), which was reintroduced in the House earlier this year and has significant bipartisan support in both chambers. RESA would allow for more retirement plans to offer annuity solutions, which provide a guaranteed lifetime income; allow employers to band together to achieve scale and reduce the costs of offering retirement plans; and provide for easier access to and participation in employer-sponsored retirement plans.

Cadin continued, “There is no time to delay in solving our nation’s retirement savings gap and forestalling a crisis – and these two pieces of legislation are a key step in the right direction. AALU is proud to partner with the ACLI and others in the life insurance and retirement savings community on this critical issue, and we urge Congress to act quickly on these two pieces of legislation and help more Americans get on the path to long-term financial security.”

About AALU

Since 1957, AALU has been the leading organization of financial professionals who provide life insurance and retirement planning solutions for individuals, families, and businesses. AALU has a rich history of success with a single focus on the issues impacting life and annuity products, and the clients its members serve. Headquartered in Washington, D.C., AALU is committed to providing its members with the essential tools and services required to help grow their businesses, serve their clients, and protect the financial and retirement security of the American people.