Retirement Bill Sponsors Include Annuity-Promoting Provisions Best Wire (04/14/03) p.A38; Kelly, Dennis
The Portman-Cardin retirement-security bill includes provisions that would promote the sale of annuities, thus benefiting life insurers and other financial services entities. The bill raises the contribution limits for 401(k) plans and IRAs, and lets workers diversify out of company stock in their 401(k) accounts, and it would reduce taxes on annuities earnings for investors taking lifetime payouts. "Life insurers will benefit, because people will turn to our product," says ACLI spokesman Jack Dolan. "Consumers will benefit, because we will relieve them of the risks and burdens that come with living a very long time in retirement." Dolan believes that the bill will encourage people to realize the need to plan for a long retirement, and says that the bill's chances of passing are good.