The Underwriter’s Corner: Underwriting Q & A
Current News: New Bill Would Allow More Annuities in 401(k) Plans
The SECURE Act is one step closer to becoming law, and with it, Americans would see a few tweaks to the way the retirement system works.
As part of the SECURE Act, which the House of Representatives passed last month, individual retirement accounts’ age cap would be lifted, small businesses would have more avenues to offer retirement plans to their employees and part-time workers would get access to 401(k) accounts. The legislation would also boost the use of annuities in retirement accounts.
Currently, plan providers have the fiduciary responsibility to vet annuities but under the safe harbor provision of the SECURE Act, the onus would be placed on insurers to provide employers with the right products. Employers would be given guidance on how to ensure those providers and their products are up to par, including reviewing the insurers’ status under state insurance regulation and enforcement.
Annuities get people thinking about the long-term, and the extra long-term. Not only do they provide a benefit for retirees, but they do so for the course of their lives, which can be longer than anticipated.
(Source: MarketWatch)