The Insured Retirement Institute isn’t happy with the DOL’s fiduciary proposal, and has dedicated a large portion of its advocacy agenda in 2016 to deadening its impact.
“IRI’s top priority is to protect access to professional financial advice and lifetime income strategies, both of which would be limited and restricted by the Department of Labor’s (DOL) fiduciary rule proposal,” the organization announced last week. “IRI plans to continue to engage Congress and urge policymakers to develop a best interest standard for financial professionals that also preserves access to retirement advice and a wide array of lifetime income products.”
In addition, said IRI President and CEO Cathy Weatherford, the principle of protecting and expanding access for American retirement savers is the foundation of its 2016 agenda.
“Our agenda identifies policy solutions to expand access to workplace retirement plans that help Americans save and prepare for retirement; to increase access to lifetime income options that help Americans ensure their savings will not be outlived; to protect access to professional financial advice that leads Americans to save more and better prepare for retirement; and to improve access to education and information that American savers need to make better and more-informed decisions regarding their finances,” Weatherford explained.
Four areas of focus for the 2016 policy agenda include:
Protecting access to professional financial advice: Research shows that those who plan for retirement with the help of a financial professional have better savings habits and exhibit sounder planning behaviors. IRI remains concerned that the DOL’s fiduciary rule proposal will limit and restrict access to retirement planning advice and result in fewer lifetime income choices for retirement savers. IRI urges Congress to advance legislation to develop a best interest standard for financial professionals that also preserves access to retirement advice and a wide array of lifetime income products.
Expanding access to workplace plans: Workplace plans are a powerful tool in helping Americans save and prepare for their retirement years. Policymakers should continue to explore ways to make retirement plans available to workers who currently lack access to a workplace plan. One proposal, supported by IRI, is to make multiple employer plans (MEPs) available to small businesses.
Increasing access to lifetime income options: Lifetime income strategies offer retirement savers the ability to secure guaranteed retirement income that cannot be outlived. Including lifetime income options in workplace plans would increase consumers’ access to these strategies, but plan sponsors need clear rules about selecting lifetime income products to make available in their plans. IRI encourages regulators to clarify safe harbor rules so employers can be confident they have met their responsibilities.
Improving access to retirement planning education and information: Providing workers with lifetime income estimates, which show how much monthly income a nest egg can generate in retirement, will lead to more informed decision making. IRI encourages the DOL to advance a rule that would require including these estimates on benefit statements. IRI also supports related legislation, the Lifetime Income Disclosure Act, which would require the DOL to move forward with this rulemaking.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
