Annuity FYI Visitor Blog

After President Obama’s Middle Class Task Force began the process of promoting annuities, the US Department of Labor (DOL) and the Treasury have put out a request for information, according to Money Management Executive’s “Treasury, Labor Dept. Issue RFI on Annuities in 401(k)s.  They are seeking out information on the benefits and drawbacks of using 401k annuities transfers to secure retirement income for Americans.  Since participants receive income in lifetime installments with annuities, the Treasury and DOL want to ensure that this form will work the best for the most people.

The American Council of Life Insurers was already excited about the Obama administration’s promotion of using annuities in different types of defined contribution plans.  They said in a statement that they are happy to provide information about the products to the Treasury and DOL.  The Insured Retirement Institute (IRI) will also be putting together annuity information for the departments to use in their research.  The government worries that an increasing number of retirees are opting for lump sum payments of their 401k or other plans.  With annuities, they purchase the product with that retirement money and receive a stream of income payments monthly that are guaranteed over a lifetime.  The departments’ RFI will help them gather more information for government recommendations.

The Insured Retirement Institute (IRI) has replaced NAVA as the consumer’s protector, according to “NAVA Gets Makeover” by Carrie Burns of Insurance Networking News.  With new employees and a new home in Washington D.C., the IRI plans to make sure that the insured retirement industry grows stronger.  They also want to ensure that investors in these guaranteed income annuities and other products are treated ethically and are well protected in the marketplace.

The IRI’s four main goals are to confirm that ethical practices are always followed in the industry, advocate for the understanding of the value of insured retirement options, safeguard “best practice standards” and “value delivery” within the industry, and to work with policy makers regarding retirement issues.

IRI’s Chairman of the Board of Directors, Mark Casady, stresses that this change is not simply a rebranding tool.  The company plans to change the direction of the insured retirement industry as a whole for their own members, financial advisers, and investors alike.  Their website is focused on providing information about annuities, other insured retirement products, and the retirement plan process.