Effective Advocacy Means Constant Vigilance Federal

The Build Back Better Act, a massive federal spending proposal, passed the House of Representatives late last year, but has stalled in the Senate.

During negotiations of the House version of the legislation, NAIFA worked to discourage several proposals that could have had consequences for NAIFA members and their clients. These proposals, which were not in the bill sent to the Senate, include:

• Limitations on section 199A deductions for non-corporate business income

• Taxes on unrealized capital gains

• Changes to the federal estate tax

• Changes to grantor trust rules that would have had consequences for irrevocable life insurance trusts

NAIFA has been involved throughout the process in discussions with key members of Congress. In December, dozens of NAIFA leaders who attended the National Leadership Conference were able to go to Capitol Hill. While security and COVID-19 protocols continued to limit access, they held approximately 40 face-to-face meetings with federal lawmakers and their staff. We look forward to holding more meetings this May at NAIFA’s annual Congressional Conference.

That’s why NAIFA remains constantly vigilant in its political advocacy efforts. Now, as much as ever, helping our elected officials and regulators create good policy is vital to protecting not just financial services professionals and the industry, but even more importantly protecting the people, businesses and communities NAIFA members serve.

Build Back Better in its current form is almost certainly not moving forward. Yet, NAIFA’s advocacy still represents a significant win because parts of the proposal could make their way into future legislation. NAIFA will remain engaged and work with Congress to ensure future spending bills do not harm the ability of NAIFA members to protect the financial security of their clients and communities.

In the face of ongoing advocacy threats, what can you do to ensure your representation is as strong as it needs to be?

• Encourage all your colleagues to become NAIFA members. Explain to them the critical advocacy work NAIFA does and how they benefit.

• Participate! Use NAIFA’s Advocacy Action Center to report your relationships with federal and state lawmakers. Meet with your members of Congress in their home districts and attend their in-district events. Attend NAIFA’s annual Congressional Conference. Grassroots is NAIFA’s advocacy strength, but it is only effective when members participate.

• Give to IFAPAC. NAIFA’s political action committee supports lawmakers and candidate who understand our issues and importance of financial professionals. IFAPAC ensures that NAIFA is in the conversation when legislation affecting our industry is up for debate.

NAIFA participates in organizations like the National Association of Insurance Commissioners (NAIC) and National Council of Insurance Legislators (NCOIL) to create and advance model rules and legislation. NAIFA helps shape these models to protect consumers while ensuring that insurance and financial professionals can continue serving Main Street clients.

One shining example is the NAIC’s Suitability in Annuity Transactions Model Regulation. NAIFA state chapters, working with the American Council of Life Insurers (ACLI) and other partners, have supported the enactment of laws or regulations in 18 states based on the model. The NAIC model protects consumers by requiring financial professionals to work in their annuity