INFRONT
The Industry Celebrates Big Wins In DC And The Courts Despite political headwinds, financial services wound up on the plus side of a pair of recent decisions, one in court and one in Congress. Both could help put more life insurance products in the hands of consumers. By John Hilton
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inancial services were not expected to celebrate many Beltway wins with Democrats in control of the executive and legislative branches of government. However, two recent developments were big victories nonetheless. The biggest news came when the House of Representatives passed the Securing a Strong Retirement Act of 2022 with overwhelming bipartisan support, 4145. A follow-up to the Securing a Strong Retirement Act of 2020, industry trade associations lobbied hard for what became known as “SECURE 2.0.” “The bipartisan legislation will deliver 4
InsuranceNewsNet Magazine » May 2022
measurable benefits to America’s workers and retirees who have anxiety over whether they will have sufficient retirement income that lasts throughout their golden years,” said Wayne Chopus, president and CEO of the Insured Retirement Institute. Among other things, the bill features provisions to loosen restrictions on annuities in retirement plans in a section called Preservation of Income. It would change required minimum distribution rules to allow annuity options and raise the limits on qualified longevity annuity contracts. A second big win came when the Eastern District of Texas reinstated the Department of Labor’s independent contractor rule. The court ruling came Wayne Chopus in a lawsuit brought by the Financial Services Institute that claimed the Department of Labor’s Trump-era rule was not correctly
removed by the Biden administration in violation of the Administrative Procedures Act. The rule is effective as of its original effective date of March 8, 2021. As a result, independent agents and financial advisors are most assuredly independent contractors again.
SECURE Act Details
Repeated surveys show Americans feeling pessimistic about their preparedness for retirement. Just 40% of those ages 45-59 and only 48% of those ages 60 and over felt prepa red, accord ing to Federal Reserve System data. Sixty-two percent of Americans ages 18–29 have retirement savings, but only 28% believe they are on track with their savings. Financial professionals say loosening restrictions on access and use of financial products will greatly help
