Spearheading a bipartisan effort to enact the Registered Index Linked Annuities Act of 2022 earned Sen. Tina Smith (D-MN) and Sen. Thom Tillis (R-NC) the Insured Retirement Institute’s 2023 Federal Champion of Retirement Security Award.
IRI presented the two senators with the award during a ceremony in Washington D.C. today in recognition of their leadership and efforts to enhance retirement security for America’s workers and retirees.
“Senator Tina Smith and Senator Thom Tillis have been leaders who have championed new laws to help America’s workers and retirees,” said IRI President and CEO Wayne Chopus. The laws provide more opportunities to save for retirement and foster innovation to facilitate the greater use of protected, guaranteed lifetime income solutions. “We are honored to present them with the IRI Champion of Retirement Security Award.”
Sen. Smith serves on the Senate Committees on Banking, Housing and Urban Affairs, and Health, Education, Labor, and Pensions (HELP). Sen. Tillis serves on the Senate Committees on Finance and Banking, Housing and Urban Affairs.
Senators Smith and Tillis were the sponsors and leaders of the bipartisan effort behind the Registered Index Linked Annuities Act of 2022. The new law, IRI notes, ensures that investors considering a registered index-linked annuity (RILA) have clear, direct information that strengthens their understanding of this unique financial product. This is vital to increasing consumer protection to prevent significant financial losses, maintain consumer confidence, and ensure fair and efficient operation of the economy.
RILAs setting sales records
RILAs are among the fastest-growing insured retirement products of the past several years. These products can balance retirement portfolios by allowing participation in market growth while reducing exposure to market loss and helping savers reach retirement goals.
“Senators Smith’s and Tillis’ leadership was a critical element in enacting the Registered Index Linked Annuities Act, which will spur further product innovation and competition for these unique products,” Chopus said.
LIMRA today released a forecast predicting that RILAs will have a strong 2024 as steady equity market growth and lower interest rates make their value proposition particularly attractive. In 2024 and 2025, LIMRA is forecasting RILA products to expand on the five consecutive years of record sales. RILA sales are likely to be as high as $52 billion in 2024 and $57 billion in 2025.
This comes on the heels of LIMRA reporting that RILA products just set a new sales record for the second consecutive quarter. RILA sales were $12.6 billion, up 19% year-over-year and 11% higher than the prior record-setting quarter, according to LIMRA’s 3Q 2023 U.S. Retail Annuity Sales Survey.
Seeing it through
Sens. Smith and Tillis were also instrumental in following up with the SEC to ensure that the Commission acted promptly and in accordance with the intended purposes of the RILA Act of 2022.
“Everyone deserves to retire with dignity and financial security,” said Sen. Smith. “We should be doing everything we can to help ensure Americans are on stable financial footing when they step away from their jobs. I want to thank the Insured Retirement Institute for this award and for all their great work on this issue.”
“I am honored to accept the 2023 Champion of Retirement Security Award,” said Sen. Tillis. “As a strong advocate for the more than 1.7 million retirees across North Carolina, I remain committed to supporting legislation that ensures their financial well-being and security.”
Senators Smith and Tillis also supported and voted for the SECURE Act and the SECURE 2.0 Act. These two new laws embodied the most sweeping changes to enhance the private sector retirement system in over a decade. The new laws will help generate billions more in retirement savings and reduce several challenges and obstacles workers and retirees face while seeking a secure and dignified retirement.
The IRI Champion of Retirement Security Award was established in 2013 to recognize policymakers who work to enhance retirement security in the United States. Since-retired Rep. Kevin Brady (R-TX) and current Rep. Mike Thompson (D-CA) were honored with the 2022 award.
SEE ALSO:
• ‘Champion of Retirement Security’ Cardin Retiring from Senate in 2024
• IRI Honors Retirement Security Champion Bill Lowe
• Retiring Champion: IRI Honors Kevin Brady During Last Days in Office
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
