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2018 National Association of Insurance Commissioners 1

Date: 3/16/18

2018 Spring National Meeting Milwaukee, Wisconsin

LIFE INSURANCE AND ANNUITIES (A) COMMITTEE Sunday, March 25, 2018

2:00 3:30 p.m. Wisconsin Convention CenterBallroom A1st Floor

ROLL CALL

Doug Ommen, Chair Iowa James J. Donelon Louisiana Jillian Froment, Vice Chair Ohio Bruce R. Ramge Nebraska Jim L. Ridling Alabama Barbara D. Richardson Nevada Peter Fuimaono American Samoa Maria T. Vullo New York Dave Jones California Jon Godfread North Dakota Stephen C. Taylor District of Columbia Elizabeth Kelleher Dwyer Rhode Island Ralph T. Hudgens Georgia Allan L. McVey West Virginia Dean L. Cameron Idaho

NAIC Support Staff: Jennifer R. Cook/Jolie H. Matthews

AGENDA

1. Hear a Presentation on Generations Ahead StudyPaul Kelash (Allianz)

2. Hear a Presentation on Life Insurance InnovationFarron Blanc (Reinsurance Group of AmericaRGA)

3. Discuss the Work Plan for Retirement Security ChargeCommissioner Doug Ommen (IA)

4. Hear a Presentation on the Issue with Designated Service ProvidersJoe Kizer (Resource Insurance Consultants)

5. Consider Adoption of its March 12 MinutesCommissioner Doug Ommen (IA)

6. Consider Adoption of its Subgroup, Working Group and Task Force ReportsCommissioner Doug Ommen (IA)

7. Consider Adoption of Valuation Manual Amendments and Related Revisions to Actuarial Guideline 42 adopted by theLife Actuarial Task ForceMike Boerner (TX)

8. Discuss Any Other Matters Brought Before the CommitteeCommissioner Doug Ommen (IA)

9. Adjournment

W:\National Meetings\2018\Spring\Agenda\A Cmte.docx

Agenda Item 1: Hear a Presentation on Generations Ahead StudyPaul Kelash (Allianz)

Allianz Life Insurance Company of North America

DISCLOSURE OPTIONS (Copy + Paste into disclosure text box) Internal: For internal use only not for public distribution. Client facing: Delete text. Fixed and Life products: For financial professional use only not for public distribution. Variable products: For broker/dealer use only not for public distribution.

Paul Kelash

VP, Consumer Insights

The Allianz Generations Ahead Study

ENT-3142 (3/2018)


2

Allianz studies

We conduct broad-based consumer research to gain insight into the U.S. population to help us and financial professionals communicate and serve consumers better

2010 and 2011 Reclaiming the Future Boomers after 2008 market

2017 Generations Ahead Boomers, Gen X, Millennials

2014 Generations Apart Boomers and Gen X


Allianz Generations Ahead Study

3

BOOMERS BORN 1946 1964

AGE 52-70 N=1,000

GENERATION X BORN 1965 1979

AGE 37-51 N = 1,000

MILLENNIALS BORN 1980 1996

AGE 21-36 N=1,000

Methodology

Qualitative discussions and a broad-based quantitative survey 3,006 U.S. adults, ages 20-70 Minimum household income of $30,000 Conducted in May 2017

The Allianz Generations Ahead Study, 2017


Broad study findings

4

Famously labeled the Me generation,

boomers are beginning to see the

importance of retirement planning

BOOMERS

Exhibiting positive financial habits but

social media and the fear of missing out (FOMO) are having

an influence

MILLENNIALS

Struggling with debt and the emotional effect it is having

on their long-term financial

planning

GEN X

Fear running out of money in retirement more than death 63%



Boomers retirement picture improving

5

Up 15 percentage points from 2010

BOOMERS

Finally feeling better about retirement, 72% feel financially prepared for retirement


think it is impossible to determine retirement expenses an improvement from 60% in 2014

50% 36% believe they lack the tools to figure out the retirement puzzle an improvement from 46% in 2014

The Allianz Generations Apart Study, 2014


Boomers are beginning to see the light

6

Boomers today are

more prepared

BOOMERS


In 2010, half of all boomers reported they were uncertain about when they could retire, if ever

Today, 32% of boomers say uncertainty about their financial future makes it difficult to know when they can stop working

The Allianz Reclaiming the Future Study, 2010


Boomers new frugality appreciation for Greatest Generation

7

64% of boomers ARE SAVERS

37% of millennials

49% of Gen Xers

61% always know exactly how much is in their

accounts BOOMERS

25% describe themselves as penny-pinchers

BOOMERS



Boomers more serious about saving

8

65% SAVING for retirement is a

basic necessity like food or housing

BOOMERS

53% SAVING

GEN X

58% SAVING

MILLENNIALS

Median amount in retirement savings Highest of all generations

$175k


have an additional

$250k+ earmarked for life after work

33% boomers


The trouble with Gen X - debt

9

GEN X

Total nonmortgage debt ($000s)

(student loans and credit cards)

$11 $9

$20 $23

Nonmortgage 2014 Nonmortgage 2017

Boomers Gen Xers

Uncertainty and growing mortgage and credit card debt, are having a negative effect on their long-term financial planning

49% admit to paying off only a partial amount on monthly credit card debt

Up from 46% in 2014

The Allianz Generations Ahead Study, 2017 The Allianz Generations Apart Study, 2014


Gen X emotional burden with debt

10

HALF of Gen Xers believe they cant start saving for retirement until they pay off credit card debt

Generation X specific retirement worries

59% worry about maintaining their lifestyle in the future

55% unsure where their income will come from as they get older

61% find the thought of providing for themselves and their family in the long term overwhelming

GEN X

42% believe going into debt to handle day-to-day purchases

is just a fact of life



28%

37%

26%

Heads in the Sand approach

Gen X feeling unprepared

11

44%

34% 41%

Boomers

Gen Xers

Millennials

Confident in ability to manage their money well

LEAST confident MOST unprepared

Financially speaking, I feel totally unprepared for retirement

2014 2017

Everything will just work out 53% 63%

Figure it out when we get there 46% 53%

The Allianz Generations Ahead Study, 2017 The Allianz Generations Apart Study, 2014


72% 63%

74% 67%

58%

76%

Boomer Gen X Millennial

MILLENNIALS

Millennials on the right track for now

12

Median amount in

retirement savings

$35k

Same amount as Gen X

Prepared for retirement Confident income will last a lifetime

Millennials making good financial progress, but influences of social media pose risks



Millennials confident with funding life goals

13

Say they are much better with money

than their parents were

Uncomfortable with debt because they saw their parents

struggle with it

66%

65%

67% 64%

78%

Boomer Gen X Millennial

Confidence to fund life goals

41% set money aside each month for savings

36% Gen Xers



Millennials use creativity with financial tools

14

71% Set up tricks to help save money

Set up different accounts for different goals

70% of MILLENNIALS



Millennials worrisome behaviors

15

16% of boomers

Spend more on going out than rent or mortgage

50%

Risks of social media

57%

spent money they hadnt planned due to social media feeds

55% experienced FOMO

(fear of missing out)

Spend money as soon as I get it

6% of boomers

17%


63% SPENDERS MILLENNIALS


Final thoughts

16

More confident in their

retirement readiness, new-found

frugality, and on the right track to

financial preparedness

Hindered by debt and a

heads in the sand mentality, need the most

help in addressing retirement planning

Exhibiting positive

financial habits and embracing technology, but social media is

having a concerning influence

BOOMERS MILLENNIALS GEN X


Questions?

Thank you.

Guarantees are backed by the financial strength and claims-paying ability of issuing company. Variable annuity guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.

Products are issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. www.allianzlife.com. In New York, products are issued by Allianz Life Insurance Company of New York, 28 Liberty Street, 38th Floor, New York, NY 10005-1422. www.allianzlife.com/new-york. Variable products are distributed by their affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. www.allianzlife.com. Only Allianz Life Insurance Company of New York is authorized to offer annuities and life insurance in the state of New York.

Agenda Item 2: Hear a Presentation on Life Insurance Innovation Farron Blanc (Reinsurance Group of AmericaRGA)

The pace of innovation is fundamentally reinventing the concept of Insurance

#ReinventLife

1 | Proprietary & Confidential

Difficult to reach market segments are being served via new approaches to distribution

Venture capitalists are arming disruptors with growth capital

Disruptors are taking aim at incumbents

with niche solutions

Incumbents are often ill-equipped

to respond

Macro-economic forces are making it difficult for industry incumbents to capitalize on growth opportunities


A robust investor ecosystem is making big bets at breakneck speed


THE IMPLICATION FOR INCUMBENTS

Traditionally, the corporate structure of Insurance incumbents has either slowed or outright prohibited innovation, leaving many left out of the innovation narrative. Why?

Threat of risk to the core business

Capital & expertise to jumpstart new ideas

Market controlled by a few, large players


5 | Green Shield RFI | Project Orchid | Proprietary & Confidential

RGA OVERVIEW - RGAx

RGAx enables our partners to:

Take unique approaches to solve

modern business problems

Create new institutional value

Bring products and services to market

faster

Serving the traditionally underserved to live longer, healthier, more financial secure lives

5| Proprietary & Confidential

RGAx invests in core capabilities and assets, allowing our partners to reduce risk and accelerated growth.

Manage best-in-breed capabilities for

customer acquisition and new channel

development

Leverage hidden insights from partner data with highly sophisticated analysis and analytics tools

Leverage third-party administration and

white-labeled system development to create

efficient fulfillment and operations

Continually offer and refine customer engagement services that are highly relevant and personalized to meet customer needs

DIGITALLY DISTRIBUTE

MANAGE &SERVICE

MODEL & MEASURE

AMPLIFY & ENGAGE


Insurance is____, not ____!a) Bought, Soldb) Sold, Bought


THE TRUSTED PERSONAL ADVISOR


ON BEHALF OF THE TRUSTED INSTITUTIONS


STEP 1: DESIGN PRODUCTS HUMANS WANT TO BUY


STEP 1: DESIGN PRODUCTS HUMANS WANT TO BUY

STEP 2: THERE IS NO STEP TWO


Human Centered Design

Observe Create Validate

=

+ +


We have & will collaborate For example team of domestic mutual executives through a bespoke exercise to incubate & grow new insurance ideas.

Exec team

1

2R+ RGAx Facilitators

3 TEAM CREATEDT T T T

T T T TR

1-week on site at RGA HQ

Transfer of ideas and methodology5

Pre-Identification of business problems

Human-centered design sprint4


EXAMPLE: MIGRANTS PROTECTION


EXAMPLE: FAMILY (MATERNITY) LEAVE


We believe that for many incumbents it costs too much, and takes too long to bring new insurance propositions to market


Incumbent life carriers Greenhouse Insurance

Fully loaded cost model (set overhead & expense allowances)

Waterfall development(sequential, minimizes wasted FTE time)

Conservative management philosophy No upside for growing NB

Huge downside for failures

2nd/3rd follower status Analysis paralysis

Strong bias against not-built here solutions

Marginal cost model(lean overhead, campaign allowances)

Agile development(parallel, minimizes launch cycle time)

Experimental management philosophy Rewarded on experimental NB growth

Upside for quickly shutting down failures

1st / pioneer status for all innovations

Time boxed analysis

Preference towards external partners / solutions

Greenhouse Insurance uses different starting points innovates on the core operate assumptions of carriers



RGAx has developed its own carrier specifically designed to enable our partners to innovate and create new opportunities.

Fulfillment Platform Business Processes

Lead Generation Underwrite Delivery Policy Issuance

Needs AnalysisRecommendation

Quote

RequirementsDecision

Compliance

E-deliveryRequirements

DistributionPlatform

ApplicationE-sign

New Ideas Agency Evidence

ManagementClaims

Model

modular

INSIGHT

CLOSING THOUGHTS: EIGHT TECH REVOLUTIONS THAT REORDER THE LIFE INSURANCE VALUE CHAIN

Startup Speed

Run for Your Life

Distributed Ledger

Penny Lane

Virality of Content

Paper-back

Writer

Aging Economy

When Im 64

Quantified Self

I Me Mine

Sharing Economy

With a Little Help From my Friend

Gene Editing

Dr.Robert

Cognitive Computing

One and One and One is Three

Wearables / IoT AI/ML

Blockchain Content Marketing Elder Tech

Platform Markets

InsureTech

CRISPR-Cas9


THANK YOUFarron [email protected]

mailto:[email protected]

Agenda Item 3: Discuss the Work Plan for Retirement Security Charge.

Insured Retirement Institute

1100 Vermont Avenue, NW | 10th

Floor Washington, DC 20005

t | 202.469.3000 f | 202.469.3030

www.IRIonline.org

www.myIRIonline.org

March 23, 2018

Submitted Electronically to [email protected]

The Honorable Doug Ommen The Honorable Jillian Froment

Commissioner, Iowa Insurance Division Director, Ohio Department of Insurance

Chair, NAIC Life Insurance and Vice Chair, NAIC Life Insurance and

Annuities (A) Committee Annuities (A) Committee

Two Ruan Center 50 W. Town Street

601 Locust, 4th Floor Third Floor - Suite 300

Des Moines, IA 50309-3738 Columbus, Ohio 43215

Re: Development of Workplan to Promote Retirement Security

Dear Commissioner Ommen and Director Froment:

On behalf of our members, the Insured Retirement Institute (IRI)1 appreciates the

opportunity to provide these comments to assist the National Association of Insurance

Commissioners (NAIC) Life Insurance and Annuities (A) Committee (the Committee) in its

effort to develop a workplan to implement its charge to [e]xplore ways to promote retirement

security consistent with the NAIC's continuing Retirement Security Initiative. IRI and our

members commend you, the NAIC, and the Committee for the valuable steps already taken as

part of the Retirement Security Initiative, and for recognizing the importance of this issue and

seeking public input to help the NAIC as it considers how to proceed.

In this letter, we will describe four specific steps the NAIC can take to promote retirement

security: 1 IRI is the only national trade association that represents the entire supply chain of the retirement income

industry. IRI has more than 500 member companies, including major life insurance companies, broker-dealers, banks, and asset management companies. IRI member companies account for more than 95 percent of annuity assets in the United States, include the top 10 distributors of annuities ranked by assets under management, and are represented by more than 150,000 financial professionals serving over 22.5 million households in communities across the country.

mailto:[email protected]

2

1. Developing a set of well-defined public policy objectives to advance this effort;

2. Supporting legislative and regulatory initiatives at the federal and state levels aimed at

enhancing retirement security for all Americans;

3. Undertaking and/or participating in retirement security awareness campaigns; and

4. Taking action to protect seniors and other vulnerable segments of the population

against financial fraud and exploitation.

We would welcome the opportunitiy to discuss these suggestions with you and other members

of the Committee in greater detail.

1. Outlining Public Policy Objectives. Promoting retirement security for all Americans is at

the heart of everything we do here at IRI. Earlier this year, we unveiled our 2018 Retirement

Security Blueprint, a copy of which is attached for your reference. The Blueprint outlines our

public policy agenda for the year and guides our engagement with policymakers about ways to

help individuals reach their financial goals and achieve a secure and dignified retirement. In

particular, we are focused on:

Maintaining and enhancing the current tax treatment for retirement savings;

Expanding opportunities for retirement savings;

Increasing access to lifetime income products;

Helping savers make decisions about their finances; and

Providing more resources to protect older Americans from financial exploitation.

Each of these areas is described in greater detail in the Blueprint. We believe a similar set of key

objectives would provide a framework within which the NAIC could seek to advance its own

efforts to promote retirement security.

2. Legislative and Regulatory Initiatives. With the NAICs policy objectives clearly defined,

the next step could be to identify and support legislative and regulatory proposals, at both the

state and federal levels, that align with those objectives. As outlined in the Blueprint, several

bills have been introduced in Congress that are aimed at enhancing retirement security for all

Americans. For example, the Retirement Enhancement and Savings Act of 2018 (H.R.

5282/S.2526) (RESA) is a comprehensive package of retirement proposals that would, among

other things:

Remove regulatory and legal barriers to make it easier for small businesses to

participate in Multiple Employer Plans (MEPs);

https://www.congress.gov/115/bills/hr5282/BILLS-115hr5282ih.pdfhttps://www.congress.gov/115/bills/hr5282/BILLS-115hr5282ih.pdfhttps://www.congress.gov/115/bills/s2526/BILLS-115s2526is.pdf

3

Allow employers to give their employees access to annuity products provided by

insurers that meet certain existing state insurance regulatory requirements, such as

capital and reserving standards;

Make lifetime income benefits for employees portable, so retirement plan participants

do not lose benefits for which they have already paid when their employer makes

certain changes to their plan;

Give all retirement plan participants information about how their account balances

could translate into retirement income, which will help them determine whether they

are saving enough to achieve their retirement goals.

Each of these provisions are also included in other bills pending before Congress, and we would

strongly encourage the NAIC to review these measures as well as any retirement-related

proposals by state legislatures or other regulatory bodies and publicly support those that are

consistent with the NAICs goals in undertaking this initiative.

3. Awareness Campaigns. IRI is proud to lead the National Retirement Planning Coalition (the

NRPC), a group of prominent financial industry associations, consumer organizations

(such as America Saves, the Center for Retirement Research at Boston College, and the

National Endowment for Financial Education), and regulatory bodies (including a number of

state insurance and securities departments) dedicated to raising public awareness of the

need for comprehensive retirement planning. Every year, the NRPC presents National

Retirement Planning Week (NRPW), a week dedicated to this important subject. This year,

NRPW will be held from April 9-13. The NRPC has developed a comprehensive set of tools

and resources to help its members and others educate Americans about the importance of

retirement saving and planning. These tools and resources are available on the NRPCs

website, www.retireonyourterms.org. For your convenience, we have attached to this letter

(i) a copy of our Digital Toolkit, which provides an overview of NRPW, key messages, and

key facts and figures, and (ii) a copy of our Policymaker Toolkit, which includes a sample

press release, a sample op-ed, and other templates policymakers can use to participate in

NRPW. The website also includes a sample social media plan for policymakers interested in

promoting NRPW on Facebook and/or Twitter.

NRPW could certainly serve as one vehicle for the NAIC and individual states to raise awareness

among consumers about retirement saving and planning, and we would strongly urge you and

your colleagues across the states to take advantage of the resources available on the NRPCs

website. In fact, over the past several years, policymakers from more than 35 states (including

insurance and securities departments, legislators, and mayors) have participated in NRPW to

varying degrees.

http://www.retireonyourterms.org/

4

In addition, the NAIC could consider establishing its own awareness campaign through which

state insurance regulators conduct local events around the country designed to reach

consumers directly. IRI would be very supportive of any such effort, and would be happy to

assist the NAIC in developing its own retirement security week or month.

4. Protecting Seniors. The financial exploitation of older Americans is one of the most

pressing issues our industry is facing. One-fifth of individuals between the ages of 71 and 79

have cognitive impairment. This increases to 50 percent between 80 and 89. Cognitive

impairment opens the door to potential abuse and fraud. Costing a conservative estimate of

$2.9 billion annually, the financial abuse and exploitation of at-risk older Americans has the

potential to eliminate lifesavings and destabilize an individuals financial wellness.

Identifying, preventing, and prosecuting financial abuse and fraud are all essential to ensuring

financial security and dignity in retirement for millions of Americans. Recognizing the need for

an ongoing initiative to raise awareness of financial abuse and to advocate for protective and

preventive strategies to address exploitation and fraud, IRI has created a web-based resource

center focused on protecting older Americans that features information for consumers,

financial advisors, and financial services forms. In addition, we have held an annual Older

Investors Summit for the past three years to convene all stakeholders for a forum to explore

these issues, and we thank the NAIC for participating in these events.

At all levels of government, legislatures and regulators are proactively seeking solutions and

preventative measures to help at-risk Americans. For example, Congress is currently

considering a measure known as the Senior$afe Act (S. 223 / H.R. 3758), which would

encourage financial professionals to report suspected financial abuse or exploitation to the

appropriate authorities. The NAIC has already publicly endorsed this measure in a letter to the

bill sponsors in October 2017, and we would encourage you to consider supporting other

legislative or regulatory proposals aimed at protecting seniors. In addition, we note that federal

funding for adult protective services agencies would have been significantly cut under President

Trumps proposed budget. We are working to maintain and, if possible, increase federal funding

for these critically important services, and your support in these efforts would be most

welcome.

Looking ahead, IRI will be working to develop best practices and educational materials for

consumers as well as financial and law-enforcement professionals on the signs and symptoms

of abuse, and we will be undertaking new research projects focused on issues facing older

Americans. We would be happy to explore ways to collaborate with the NAIC to raise

awareness of this issues and what family members, friends and financial advisors can do if they

suspect elder financial abuse or exploitation and any other efforts the NAIC may decide to take

on in the coming months and years.

https://www.congress.gov/115/bills/s223/BILLS-115s223is.pdfhttps://www.congress.gov/bill/115th-congress/house-bill/3758

5

Conclusion

IRI and our members share your commitment to raising public awareness of the importance of

retirement saving and planning, and we look forward to working with the NAIC and the

Committee as this effort takes shape. We will continue to think about other steps the NAIC

might consider taking in furtherance of this objective. We hope the information and

recommendations provided in this letter are helpful. If you have questions about anything in

this letter, or if we can be of any further assistance in connection with this important effort,

please feel free to contact me, IRIs Senior Vice President and General Counsel Lee Covington,

or IRIs Vice President and Counsel for Regulatory Affairs, Jason Berkowitz. Thank you for your

consideration.

Sincerely,

Catherine J. Weatherford

President & CEO


Cc: The Honorable Julie Mix McPeak, Tennessee Insurance Commissioner, NAIC President

The Honorable Eric Cioppa, Maine Insurance Superintendent, NAIC President-Elect

The Honorable Raymond Farmer, South Carolina Insurance Director, NAIC Vice President

The Honorable Gordon Ito, Hawaii Insurance Commissioner, NAIC Secretary-Treasurer

Mr. Michael Consedine, NAIC Chief Executive Officer

1

2018 RETIREMENT SECURITY BLUEPRINT

2018 Retirement Security Blueprint

Americans face many challenges and obstacles in saving for retirement. In the past, many Americans relied on employer-based pension plans for retirement savings. Today, most Americans rely on other types of retirement savings plans such as 401(k) or Individual Retirement Accounts,

which make individuals responsible for ensuring their own financial security during retirement. IRIs 2018 Retirement Security Blueprint includes common sense, bipartisan policies to help Americans achieve their retirement goals.

1. Maintain and enhance current tax treatment for retirement savings;

2. Expand opportunities to save for retirement by enhancing access and features of workplace retirement plans;

3. Increase access to lifetime income products in workplace retirement plans;

4. Preserve and improve access to professional financial guidance, education and information; and

5. Provide more resources to protect older Americans from financial exploitation.

The Insured Retirement Institute (IRI) is the leading association for the retirement income industry. IRI proudly leads a national consumer coalition of 40 organizations and is the only association that represents the entire supply chain of insured retirement strategies. IRI members are the major insurers, broker-dealers, distributors, asset managers, and 150,000 financial professionals. As a not-for-profit organization, IRI provides an objective forum for communication and education and advocates for the sustainable retirement strategies Americans need to help achieve a secure and dignified retirement.

IRIS 2018 BLUEPRINT WILL: WHO IS IRI?

2018 ADVOCACY BLUEPRINT

2

Expand Opportunities To Save For Retirement1. REQUIRE EMPLOYERS TO OFFER RETIREMENT PLANS FOR WORKERS

Most Americans are not saving enough for retirement because they do not have access to employment-based retirement savings plans. In fact, recent research has shown only 40 percent of full-time workers at small and medium-sized businesses have access to employment based 401(k) plans. To expand access for more Americans to have an opportunity to increase their savings for retirement, Congress should enact legislation such as the Automatic Retirement Plan Act of 2017.

This bill would generally require all but the smallest employers to maintain a 401(k) plan and employees would be automatically enrolled (with the ability to opt out). It would also remove cumbersome legal and regulatory barriers which discourage employers from offering this benefit to their employees while preserving employer choice and maintaining protections for employers and their employees.

Maintain And Enhance Current Tax Treatment For Retirement Savings1. MAINTAIN TAX-DEFERRED TREATMENT FOR RETIREMENT SAVINGS

The Tax Cuts and Jobs Act recognized the vital role tax deferred retirement savings plays in spurring Americas economic growth and prosperity. By maintaining the tax-deferred treatment of retirement savings, Congress preserved the tools necessary to help Americans save for their retirement during their working years. Research

conducted by IRI shows Americans would save less if tax deferral is reduced or eliminated. Congress should continue to promote the use of tax deferral for retirement savings to encourage more Americans to prepare and save for a secure retirement.

2. PROTECT THE CURRENT STRUCTURE AND DIVERSITY OF WORKPLACE RETIREMENT PLANS

There are several types of workplace defined contribution retirement plans which consider the differences among workers in various employment sectors, such as the private, governmental, church, educational, and nonprofit sectors. The most prominent are 401(k), 403(b) and 457(b) plans. Proposals to consolidate these types of plans were considered for

inclusion in the Tax Cuts and Jobs Act for purposes of simplification and consolidation. The final legislation maintained the distinct types and structures of retirement plans which were created to address the needs of distinct types of workers. Congress should continue to protect and maintain the current structure and diversity of workplace retirement plans.

3. PROVIDE FAVORABLE TAX TREATMENT FOR GUARANTEED LIFETIME INCOME IN RETIREMENT

Distributions and withdrawals from guaranteed lifetime income products like annuities are currently taxed as ordinary income. However, these products provide significant social and economic benefits. By helping older Americans avoid outliving their assets, annuities reduce pressure on

Social Security and similar programs. Congress should therefore create tax incentives such as a lower tax rate or an exclusion from taxation to encourage greater use of guaranteed lifetime income products.


3

4. ENHANCE THE START-UP CREDIT FOR SMALL EMPLOYERS RETIREMENT PLANS

Under current law, small employers with up to 100 employees can receive an annual tax credit equal to 50% of the costs of starting a retirement plan, up to a maximum of $500 for three years. Unfortunately, this incentive is not having the desired impact. According to the Bureau of Labor Statistics, less than half of all workers at companies with fewer than 50 employees have access to an employer-sponsored retirement

plan. Congress should therefore enact the Retirement Enhancement and Savings Act of 2016, the Small Businesses Add Value for Employees Act (SAVE) of 2017, the Automatic Retirement Plan Act of 2017, or similar legislation to make the start-up retirement credit available for the first five years and to increase the maximum credit to $5,000.

2. ENABLE ALL SMALL BUSINESSES TO USE MULTIPLE EMPLOYER PLANS FOR THE BENEFIT OF THEIR WORKERS

Small businesses face financial and administrative challenges, as well as legal risks, when offering a retirement plan to employees. As a result, many do not offer a retirement savings plan for their employees. Allowing small businesses to band together to achieve economies of scale and to delegate to a professional plan fiduciary responsibility for sponsoring the plan would facilitate their offering a retirement plan and would expand access to a workplace plan for more workers. This can be achieved by removing the restrictions on the types of employers that can band together in a Multiple Employer Plan (open MEPs), and by protecting employers who participate in a MEP and their employees from any negative consequences

caused by the acts or omissions of other employers (the one bad apple rule). Congress should enact legislation to expand access to MEPs, such as the provisions which have been included in the Retirement Enhancement and Savings Act of 2016, the Automatic Retirement Plan Act of 2017, the Retirement Security Act of 2017, Retirement Security for American Workers Act and the Small Businesses Add Value for Employees Act (SAVE) of 2017. In addition, given that lifetime income strategies greatly reduce the risk of outliving retirement savings, these plans should be required to make a lifetime income option available to participating employees.

3. INCREASE THE AUTO-ENROLLMENT AND AUTO-ESCALATION DEFAULT RATES

Studies have shown that automatic enrollment is extremely successful in getting more people to save for retirement with participation rates at least 10 percentage points higher in plans with automatic enrollment (77%) than those without it (67%). Under current law, employers can automatically enroll employees in 401(k) plans and most private-sector employers set the default rate at 3 percent of pay. This is too low for adequate retirement savings. Research by EBRI has found that a 6 percent default savings rate would lead to significantly better retirement outcomes for workers without causing a marked increase in workers opting out of the plan.

Workers across all income brackets are statistically more likely to participate when their employers have auto-enrollment but will need higher savings thresholds to reach their retirement savings goals. Congress should increase the default deferral rate to 6 percent at the time of automatic enrollment and permit automatic escalation up to 15 percent. This proposal is part of several bills, including the Retirement Security Act of 2017, the Small Businesses Add Value for Employees Act (SAVE) of 2017, the Automatic Retirement Plan Act of 2017 and the Retirement Plan Simplification and Enhancement Act of 2017.


4

2. ENABLE ANNUITY PORTABILITY

Due to a technicality in the tax code, employees who invest in lifetime income options through an employment-based retirement plan would lose the guarantees associated with those investments if their employer changes recordkeepers. To avoid this result, many employers simply choose not to offer lifetime income options. Congress should enact the

Retirement Plan Simplification and Enhancement Act of 2017 or the Retirement Enhancement and Savings Act of 2016, which include provisions to treat a recordkeeping change as a distributable event. This simple amendment will ensure workers are not harmed if their employer decides to make such changes.

3. REDUCE THE AGE REQUIREMENT FOR IN-SERVICE ROLLOVERS TO PURCHASE LIFETIME INCOME PRODUCTS

Under Internal Revenue Service (IRS) rules, participants are required to wait until age 59 1/2 to purchase an annuity or other guaranteed lifetime income products. Congress should amend the Code to allow plan participants aged 50 and older to initiate special in-service rollover rules

for the purchase of deferred income annuities. Allowing such purchases of deferred income annuities would help to facilitate greater access to lifetime income products for participants at an earlier age.

4. UPDATE REQUIRED MINIMUM DISTRIBUTION (RMD) RULES TO REFLECT LONGER LIFESPANS

The Required Minimum Distribution (RMD) age was set in 1962 when life expectancies were considerably shorter than they are today. Workers today face an increased risk of outliving retirement assets because of longer lifespans. For a married couple age 66, there is a 66 percent chance of at least one spouse living to

age 90, and 33 percent chance of at least one spouse living to 92. Congress should enact legislation such as the Retirement Plan Simplification and Enhancement Act of 2017 to increase the RMD age from 70 to at least 75 and mortality tables should be updated to reflect longer life expectancies.

1. CLARIFY EMPLOYER FIDUCIARY RESPONSIBILITY FOR CHOOSING LIFETIME INCOME PRODUCTSCurrent regulations do not provide sufficient clarity about the steps employers must take to satisfy their fiduciary responsibilities if they want to make lifetime income products available to their employees. Employers should be permitted to give their employees access to lifetime income products provided by insurers that meet certain existing regulatory requirements enforced

by state insurance regulators, such as capital and reserving standards. This can be achieved either through a Department of Labor rulemaking or Congressional enactment of legislation such as the Increasing Access to a Secure Retirement Act, the Small Businesses Add Value for Employees Act (SAVE) of 2017 and the Retirement Enhancement and Savings Act of 2016.

Increase Access To Lifetime Income Products


5

Help Savers Make Decisions About Their Finances1. ADOPT A CLEAR, CONSISTENT AND WORKABLE BEST INTEREST STANDARD OF CARE

FOR FINANCIAL PROFESSIONALS

For nearly a decade, Congress and regulators at the federal and state levels have been working to formulate appropriate standards of conduct for financial professionals who provide personalized advice about investments and/or insurance to retail consumers. The Department of Labor (DOL) fiduciary rule, which took effect in part last year, is under review by order of the President, while the Securities Exchange Commission (SEC) and the National Association of Insurance Commissioners (NAIC) are developing their own proposals to establish a best interest standard for financial professionals who provide investment advice. Moreover, Congress and several state legislatures and regulators are considering or have introduced their own proposals.

IRI and its members have long supported the principle that financial professionals should be required to act in their clients best interest when providing personalized recommendations. To avoid the creation of duplicative or conflicting rules, IRI urges all regulatory bodies including the SEC, the NAIC, the DOL, the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) to work constructively and collaboratively to develop a clear, consistent and workable best interest standard that will provide meaningful and effective consumer protections without depriving Americans of access to valuable financial products and services.

5. REFORM THE RULES GOVERNING THE USE OF QLACS

6. ALLOW BROADER USE OF LIFETIME INCOME PRODUCTS AS DEFAULT INVESTMENT OPTIONS

Current Treasury Department regulations governing qualifying longevity annuity contracts (QLACs) imposed certain limits on the exemption from the minimum distribution rules until payments commence which have prevented QLACs from achieving their intended purpose in providing longevity protection. The regulations limit the premiums an individual can pay for a QLAC to the lesser of $125,000 or 25% of the individuals account balance under the plan or IRA. These limits were included in the regulation because the Treasury Department lacked

the statutory authority to exempt more than 25% of any account. Congress should enact legislation, such as that contained in Section 203 of the Retirement Plan Simplification and Enhancement Act of 2017, to provide the statutory authority the Treasury Department requires to enhance QLACs by easing the administrative challenges associated with rolling over funds to purchase a QLAC and increase the size of the exemption from the required minimum distribution (RMD) rules.

Under the Pension Protection Act of 2006 (PPA), the Department of Labor (DOL) was directed to adopt rules to allow capital appreciation and/or capital preservation products to qualify as Qualified Default Investment Alternatives (QDIAs). However, the DOL regulations require that the product be transferable every 90 days. As a result, employers cannot provide their workers with

capital preservation lifetime income products, leaving workers without access to guaranteed lifetime income. This is inconsistent with Congresss intent. Congress should enact legislation directing the DOL to revise the QDIA regulations by removing the 90-day transferability requirement, so employers can include lifetime income products for their workers.


6

5. IMPLEMENT THE NATIONAL INSURANCE LICENSING CLEARINGHOUSE

4. ENCOURAGE ELECTRONIC DISCLOSURE FOR RETIREMENT PLANS

With the passage of the National Association of Registered Agents and Brokers Reform Act (NARAB II) in 2015, focus shifted towards implementation of the law. NARAB II establishes a one-stop federal licensing clearinghouse for financial professionals holding state insurance licenses in multiple states. Financial professionals who have passed background checks in their home state will be able to apply for NARAB membership, enabling them to sell guaranteed lifetime income products in other states and reduce the

regulatory burden of dealing with multiple state insurance licensing processes, while ensuring clients have access to a full suite of lifetime income options. The law maintains important consumer protections, retains states authority to regulate the marketplace, and improves consumer choice. To realize the benefits of this law, IRI urges the President to appoint NARABs board and allow NARAB operations to begin as soon as possible.

Encouraging the use of modern electronic communication would have a direct and beneficial impact on workers and beneficiaries. Participants of all ages and incomes increasingly prefer to access information online, allowing them to more easily act on that information. According to the Progressive Policy Institute, the volume of printed disclosure is intimidating to workers and the static nature of printed documents does not invite the interactive

engagement consumers need to manage their retirement portfolios appropriately. Congress should enact legislation, such as the Receiving Electronic Statements to Improve Retiree Earnings (RETIRE) Act, to permit electronic delivery to be the default option for providing required disclosures to plan participants, with an option to receive paper if desired.

3. ADOPT A VARIABLE ANNUITY SUMMARY PROSPECTUS

A variable annuity summary prospectus would improve consumers understanding of their investment choices and reduce regulatory burdens by streamlining disclosures to facilitate better decision making regarding lifetime income options. There is widespread support among investors for a shorter, more consumer-friendly prospectus. An IRI study found that 95 percent of

investors would prefer a summary prospectus and six out of 10 individuals said they would be more likely to talk to their financial advisor about, and consider, a variable annuity if they had access to a variable annuity summary prospectus. IRI urges the SEC to move forward expeditiously to promulgate a summary prospectus for variable annuities.

2. REQUIRE LIFETIME INCOME ESTIMATES ON WORKERS BENEFIT STATEMENTS

To save appropriately for retirement, workers should understand how much monthly income their nest egg could generate in retirement. Research by IRI found that more than 90 percent of workers want retirement income estimates and would find them helpful. Additionally, more than 75 percent of workers said they would increase their savings level after seeing these estimates.

Congress should enact the Lifetime Income Disclosure Act (LIDA), which would direct the Department of Labor to adopt a rule requiring the inclusion of lifetime income estimates on benefit statements. This provision was also included in the Small Businesses Add Value for Employees Act (SAVE) of 2017 and the Retirement Enhancement and Savings Act of 2016.


7

1. ENABLE FINANCIAL ADVISORS TO PROTECT THEIR CLIENTS FROM FINANCIAL ABUSEWith an aging population, it is critical to have rules in place to protect older Americans and other vulnerable adults from financial exploitation. It is also critical to have laws in place to encourage the reporting of suspected abuse by banks, credit unions, investment advisers, broker-dealers and insurance companies, as well as their employees. Congress should work expeditiously to enact the

Senior $afe Act of 2017, which has also been included in the Financial CHOICE Act, the Economic Growth, Regulatory Relief, and Consumer Protection Act, and the HOME Act, all of which will serve to protect millions of older Americans who suffer financial exploitation each year, costing retirees at least $2.9 billion per year.

2. INCREASE FEDERAL APPROPRIATIONS TO STATE ADULT PROTECTIVE AGENCIES State Adult Protective Services (APS) agencies serve a critical role in the effort to protect older Americans against financial fraud and exploitation. Unfortunately, APS offices across the country are badly underfunded, leaving them without sufficient staff or resources to fully investigate all reports of suspected financial abuse. While these agencies are primarily funded by their individual states, funds can also be obtained through a variety of federal programs such as the Social Services Block Grant program, the Prevention of Elder Abuse

and Neglect program, the Elder Rights Support Activities program, and the State Grants to Enhance Adult Protective Services program. Congress should enact legislation to increase the amounts appropriated to support these and other similar federal programs to ensure that state APS agencies have the resources they need to investigate and prosecute suspected abuse and exploitation of the growing population of older Americans.

Provide More Resources to Protect Older Americans from Financial Exploitation

www.RetireOnYourTerms.org Insured Retirement Institute (IRI) | 1100 Vermont Ave. NW, 10th Floor | Washington, DC 20005 | (202) 469-3000

RETIREMENTTHINKRE

NATIONAL RETIREMENT PLANNING COALITION

NRPCNATIONAL RETIREMENTPLANNING COALITION

NRPC

RETIREMENTTHINKRE


NRPC

NATIONAL RETIREMENTPLANNING COALITION

Option A

Option B

National Retirement Planning Week is a national effort to help consumers focus on their financial needs in retirement. Its a week-long celebration and throughout National Retirement Planning Week, educational materials will be made available in conjunction with the weeks agenda, and the National Retirement Planning Coalition will encourage retirement planning through nationally distributed print, radio materials, a coordinated media outreach program, and events throughout the week.

While National Retirement Planning Week events are concentrated during one week every year, the ideas and resources offered are intended to have a long-lasting impact. The goal is to promote the importance of comprehensive retirement planning. Despite developing trends that have made planning for and funding retirement more difficult it is still possible to Retire On Your

Terms if comprehensive retirement plans are properly developed and managed. To support these educational and awareness efforts, the coalition maintains www.RetireOnYourTerms.org, which features life-stage specific resources and tools to help Americans focus on their long-term financial goals.

1. Underscore yourcommitment to retirementand financial planning.

2. Demonstrate yoursupport for advancingfinancial literacy.

3. Leverage significantmedia exposurethroughout the week.

4. Increase online engagementwith your target audiences.

5. Join numerous local, state, and federal publicpolicymakers in promoting resources that help consumers.

The week is organized by the National Retirement Planning Coalition a group of prominent education, consumer advocacy and financial services organizations, which recognizes that the need to help Americans plan for retirement is an

ongoing effort. The coalition, spearheaded by the Insured Retirement Institute, is committed to educating Americans about the importance of retirement planning and is determined to make this a national priority.

National Retirement Planning Week 2018

DIGITAL TOOLKITWHAT IS NATIONAL RETIREMENT PLANNING WEEK (NRPW) 2018?

What is the goalof National Retirement Planning Week?

Why participate inNational Retirement Planning Week?

Who organizesNational Retirement Planning Week?

When is ittaking place?

Where can I findmore information?

www.RetireOnYourTerms.org RetireOnYourTerms @RetireOnYourTerms

National Retirement Planning Week is held annually in April. This year the celebration will occur April 9-13, 2018.


RETIREMENTTHINKRE



NRPC

RETIREMENTTHINKRE


NRPC


Option A

Option B

In 2018, National Retirement Planning Week will continue to promote awareness of the need to comprehensively plan for retirement and encourage Americans to plan for their future financial needs. This year our theme focuses on how consumers can Rethink Retirement and learn new tips and strategies to help them prepare for their retirement journey. National Retirement Planning Week is an opportunity for everyone to get involved and raise awareness. Contact John Jennings, Government and Public Affairs Specialist for more information at [email protected].

THINK RETIREMENT National Retirement Planning Week 2018 Theme:

1. Develop a Retirement Plan and Save

2. Learn the Basics of Financial Planning

3. Consider Consulting a Financial Professional

KEYMESSAGE

Developing a plan is the first step toward a financially secure future. The next step is to commit to saving. Saving as early as possible is the key to success. Waiting until later in life requires much heftier saving over a shorter period of time and may even require working more years. In general, experts recommend saving 10% to 20% of income, depending on your age and the number of years until retirement.

Retirement planning and preparedness are at critically inadequate levels, with studies showing the majority of Americans lack any kind of retirement savings strategy. Learning the basics of investment and what options are best for you are important to your financial future.

Many consumers who are unsure about where to start may benefit from developing a retirement income plan with the help of a trusted, qualified advisor. A knowledgeable advisor will help you define life goals, identify risks you may face, and establish the right financial picture.

DEVELOP A PLAN AND SAVE

LEARN THE BASICS OF FINANCIAL PLANNING

CONSIDER HIRING A FINANCIAL PROFESSIONAL

1. 2. 3.


RETIREMENTTHINKRE



NRPC

RETIREMENTTHINKRE


NRPC


Option A

Option B

KEY FACTS & FIGURES regarding consumer retirement perceptions

Sources: Boomer Expectations for Retirement 2017 (April, 2017), Dont You (Forget About Means): Third Biennial Study on the Retirement Readiness of Generation X

Sources: Boomer Expectations for Retirement 2016 (April, 2016), Dont You (Forget About Means): Third Biennial Study on the Retirement Readiness of Generation X (March 2016)

Among GenXers

work with a financial professional, but those that do are twice as likely to have saved $100,000 or more for retirement.

Defined benefit pensions provide more than 50% OF LIFETIME INCOME for more than 4 IN 10 retirees.

How important is lifetime income?

Do men feel more prepared than women?

Sources: Boomer Expectations for Retirement 2017 (April, 2017), Its All About Income: Inaugural Study on the American Retirement Experience (September, 2016)

Sources: Womens Perspectives on Saving, Investing, and Retirement Planning (November, 2015)

GENERATION X

GENERATION X

have money saved for retirement

accurately estimate the percentage of their income that may be required to pay for health care

have tried to calculate how much they need to save in order to retire

have saved less than $150,000

havent tried to calculate how much they need to have saved by the time they retire

73%

58%

How prepared are Americans for retirement?

The importance of a financial advisor for holistic retirement planning

90% OF BABY BOOMERS who work with a financial professional have retirement savings.

$100K in savings

78%

$100K in savings

58%

Have saved $100,000 or more for retirement not using a financial

professional

Have saved $100,000 or more for retirement

with help of a financial professional

More than

Boomers who work with a financial professional feel they are better prepared for retirement as a result of that relationship.

8 in 10

only 3 in 10

Only 1 in 4 BABY BOOMERS expect to receive lifetimeretirement income from a pension, and 85 percent say it is important to have a source of guaranteed lifetime income other than Social Security. But, FEWER THAN 1 in 10 say they would use a portion of their savings to purchase an annuity.

Women express a higher level of concern about both saving enough for retirement, and being able to afford their desired lifestyle in retirement, than men do.

50%

40%Concerned about saving enough for retirement

50%

30%

More than

Concerned about affording desired lifestyles

54%18%

BABY BOOMERS

Only

Only

40%Only

More than


RETIREMENTTHINKRE



NRPC

RETIREMENTTHINKRE


NRPC


Option A

Option B

National Retirement Planning Week is brought to you by The National Retirement Planning Coalition (NRPC). The NRPC is composed of prominent financial industry and advocacy organizations dedicated to raising the public awareness of the need for holistic retirement planning.

America Saves

American Academy of Actuaries

American Benefits Council

American Council of Life Insurers (ACLI)

American Institute of Certified PublicAccountants (AICPA)

American Savings EducationCouncil (ASEC)

Association for Financial Counselingand Planning Education (AFCPE)

Association of Ohio Life InsuranceCompanies (AOLIC)

Center for Retirement Research atBoston College

Colorado Department of RegulatoryAgencies (DORA)

Defined Contribution InstitutionalInvestment Association (DCIIA)

Employee Benefit ResearchInstitute (EBRI)

Federal Citizen Information Center(FCIC) of the U.S. General ServicesAdministration

Financial Industry RegulatoryAuthority (FINRA) Investor EducationFoundation

Financial Services Institute (FSI)

Financial Services Roundtable (FSR)

Insured Retirement Institute (IRI)

Iowa Insurance Division

Life Insurance Association ofMichigan (LIAM)

Life Insurance Council of New York,Inc. (LICONY)

LIMRA LOMA Secure RetirementInstitute

Louisiana Department of Insurance

MANA, A National LatinaOrganization (MANA)

Minnesota Department of Commerce

Mississippi Department of Insurance

National Academy of SocialInsurance (NASI)

National Association for FixedAnnuities (NAFA)

National Endowment for FinancialEducation (NEFE)

National Foundation for CreditCounseling (NFCC)

NICSA

Securing Mi Financial Future, Michigan DIFS

Society of Actuaries

Texas Association of Life and HealthInsurers (TALHI)

The American College

The Aspen Institute

Wisconsin Council of Life Insurers(WCLI)

Womens Institute for a SecureRetirement (WISER)

WorldatWork

The Coalition, led by the Insured Retirement Institute, is comprised of the following members:

SUPPORTERS of NRPW

matt.martinezCross-Out


RETIREMENTTHINKRE



NRPC

RETIREMENTTHINKRE


NRPC


Option A

Option B

In order to achieve maximum outreach and efficient information sharing we will use our social media platforms and www.RetireOnYourTerms.org website for outreach and engagment with our stakeholders.

#NRPW18 #RethinkRetirement #ROYT #IRI

NRPW SOCIAL MEDIA CHANNELS & WEBSITE

NRPW HASHTAGS:

RetireOnYourTerms

Like the RetireOnYourTerms page on Facebook to

stay informed and share updates. Use the hashtags #NRPW18 #RethinkRetirement #NRPW #IRI.

RetireOnYourTerms

Follow us on Twitter @ROYT and @IRI.

Use the hashtags #NRPW18 #RethinkRetirement #NRPW #IRI.

www.retireonyourterms.org

Check out our website to take our National Retirement Planning Week

Pledge and to find out more information on activities, participating organizations, media, and consumer resources for holistic retirement planning.


RETIREMENTTHINKRE



NRPC

RETIREMENTTHINKRE


NRPC


Option A

Option B

National Retirement Planning Week (NRPW) materials are accessible at: www.retireonyourterms.org under our Action Center section

More information on NRPW Press and Media can be found on our website www.retireonyourterms.org under Media section. Dont forget to share your NRPW press releases and other media mentions with Government and Public Affairs Specialist, John Jennings, at [email protected]. We will publish the NRPW Pre-Press Release with supportive information about NRPW events and activities on March 15. We would kindly ask you to share it with others.

For more information with regard to NRPW press and media, please contact:

John JenningsGovernment and Public Affairs Specialist [email protected] (202) 469-3017

Matthew MartinezDigital Marketing [email protected](202) 469-3007

NRPW RESOURCES

NRPW PRESS AND MEDIA

NRPW TEAM

NRPW Toolkit 2018 Sample Op-ed

News Release Newsletter Copy

List of NRPC Members Social Media Tiles

Web Banner GIF Banner/Button

List of helpful materials:

www.RetireOnYourTerms.org Insured Retirement Institute (IRI) | 1100 Vermont Ave. NW, 10th Floor | Washington, DC

20005 | (202) 469-3000

NATIONAL RETIREMENT PLANNING WEEK ONE MINUTE

Mr. / Mme. Speaker:

I rise today in recognition of the National Retirement Planning Coalition. Under

the leadership of the Insured Retirement Institute, the National Retirement

Planning Coalition is committed to engaging all Americans in a national

conversation on the importance of retirement planning. With rising healthcare

costs, longer life spans, and a reduction of pension offerings, more Americans

than ever before are shouldering the burden of financing and managing their

savings for retirement entirely by themselves.

Despite these developing trends, the National Retirement Planning Coalition

seeks to guide all Americans towards securing a dignified and secure retirement

through holistic planning. To highlight their efforts, each year the Coalition

sponsors National Retirement Planning Week, which will take place this year

during the week of April 9th through the 13th. During the week, Coalition members

will be participating at educational events, publishing research, and sharing

resources, all aimed at helping Americas consumers and financial professionals to

think about and prepare for their retirement years by developing and executing

long-term financial strategies.

Mr. /Mme. Speaker, there are steps we all can take to achieve financial

independence and security in our retirement years. By participating in National

Retirement Planning week, we have the opportunity to engage in a national

dialogue about the importance of preparing and planning for retirement. I

encourage my colleagues to join with me and the National Retirement Planning

www.RetireOnYourTerms.org Insured Retirement Institute (IRI) | 1100 Vermont Ave. NW, 10th Floor | Washington, DC

20005 | (202) 469-3000

Coalition to participate in the weeks activities to inform and educate Americans

all across the nation to take some time out of their busy schedules during the

week and think about their retirement years, review their retirement plans if they

have one and if they do not have one, then take some time to make a plan for

their retirement which can help them enjoy their retirement years.

MONTH DAY, 2018

Ms. Catherine Weatherford

President and CEO


1100 Vermont Avenue NW, 10th Floor

Washington, DC 20005

Re: National Retirement Planning Week 2018

Dear Ms. Weatherford:

Developing a comprehensive retirement plan is a vital first step on the path to a financially

secure future. However, many Americans are under-prepared for the financial challenges they

may face in their retirement years. With this in mind, there must be a national conversation on

the importance of retirement planning. By encouraging Americans to conscientiously prepare

for their retirement years, we can significantly enhance financial security in the United States.

National Retirement Planning Week is an essential campaign, raising awareness of these

important issues. By providing Americans with helpful information, they can make informed

decisions regarding their finances. The National Retirement Planning Coalitions efforts to

educate American consumers on retirement planning are commendable. My best wishes as you

continue this valued campaign.

Sincerely,

[SIGNATURE]

MEMBER OF CONGRESS

STATE, DISTRICT


National Retirement Planning Week 2018:

WHEREAS, retirement planning was once thought of as an issue for older, wealthier adults

to deal with, the truth is that preparing for a secure future is no longer considered a life

stage or income-specific endeavor; and

WHEREAS, each day about 10,000 Baby Boomers who are members of a generation largely

unsure of their financial future are about to enter their retirement years; and

WHEREAS, providing for financial wellness in our later years is now an individual

responsibility; and

WHEREAS, preparing for and financing ones retirement is now increasingly difficult, with

more Americans shouldering the burdens themselves, and

WHEREAS, a unique set of challenges has emerged, including changes in employee

benefits, longer life spans, uncertainty with Social Security and Medicare, as well as rising

cost of health care; and

WHEREAS, there is a growing need to educate Americans on retirement planning; and


1100 Vermont Avenue, NW, Tenth Floor Washington, D.C. 20005 202-469-3000

FOR IMMEDIATE RELEASE Contact:XYZ

April XX, 2018 (555) 555-5555

National Retirement Planning Week Urges

for National Conversation INSERT NAME/ORGANIZATION Joins Effort to Promote

Retirement Planning

INSERT CITY, STATE WHERE FILING The National Retirement Planning Coalition,

comprised of the predominant financial education, consumer advocate, and financial services

organizations, has declared April 9-13 National Retirement Planning Week. In recognition of the

national conversation needed on retirement savings, INSERT ORGANIZATION NAME

issued the following statement.

We appreciate how daily life and the pressures of speculating on the future can make planning

for retirement appear daunting. However, opportunities exist to calm these apprehensions, said

INSERT EXECUTIVE TITLE-NAME. Simple things, such as being proactive and routinely

assessing your financial preparedness for retirement, are fantastic first steps towards achieving a

financial secure and dignified retirement Additionally, the guidance of financial professionals

will also help you to achieve your goals.

The National Retirement Planning Coalition, spearheaded by the Insured Retirement Institute,

recognizes the need to educate Americans on retirement planning and is committed to making

this a national priority. National Retirement Planning Week and other Coalition activities

demonstrate that it is possible to Retire On Your Terms. To support these education efforts, the

coalition has collected the latest resources to help consumers and financial professionals focus on

long-term financial goals. These tools are available year-round at www.retireonyourterms.org.

To support the efforts of the Coalition, INSERT ORGANIZATION NAME will be

INSERT ORGANIZATION ACTIVITIES HERE.

INSERT ORGANIZATION BOILERPLATE HERE

-- END

INSERT ORGANIZATION BOILERPLATE

mailto:[email protected]://www.retireonyourterms.org/


WHEREAS, carving some time out on a routine basis to review your finances and assess

you financial preparedness for retirement is an achievable first step; and WHEREAS, being

proactive about planning and seeking professional guidance when warranted can help

Americans achieve financial freedom; and

WHEREAS, crafting a holistic financial plan for retirement can restore confidence and build

savings for those post-working years; and

WHEREAS, experts from the National Retirement Planning Coalition, the group that

organizes National Retirement Planning Week are urging Americans to use this time to

develop, review and/or revise their retirement plans with the tools and help available at

www.RetireonYourTerms.org,

NOW, THEREFORE, BE IT RESOLVED, that (State, City, Department, Agency) does hereby

proclaim the week of April 9 to 13, 2018 National Retirement Planning Week; and

BE IT FURTHER RESOLVED, that (State, City, Department, Agency) supports and joins in

this national effort to help consumers focus on their financial needs in retirement.

http://www.retireonyourterms.org/http://www.retireonyourterms.org/


National Retirement Planning Week 2018: Stock Op-Ed

The National Retirement Planning Coalition, comprised of prominent education, consumer advocacy,

and financial services organizations, recognizes the need to educate Americans on retirement planning

and is committed to making this a national priority. While retirement planning was once thought of as

an issue for older, wealthier individuals, the truth is that preparing for a secure future is no longer

considered an income-specific endeavor only pursued by those about to enter their golden years.

Providing for financial wellness in our later years is now an individual responsibility, and the earlier you

start, the better off youll be. From students to grandparents, there are steps, both large and small, that

we can be taking at every phase of life to empower ourselves for the future we envision.

The first step we all should take towards achieving financial independence in our retirement years is the

simplest: rethinking what we think we know about retirement preparedness. To spread this message,

the National Retirement Planning Coalition is organizing National Retirement Planning Week April 9-13.

Through the release of educational materials during a national media-outreach campaign, comprised of

print, radio, and social media spots, the National Retirement Planning Coalition is urging Americans to

#RethinkRetirement and #RetireonYourTerms.

Below are just a few ideas to mull over while following along with National Retirement Planning Week.

Students

Children watch, absorb, and imitate the actions of the adults around them and money management is

no different. The saving and spending habits they witness early on form lasting impressions on how they

handle their own money in the future. Something as simple as putting spare change in a jar can send a

great message to developing minds about setting money aside.

Similarly, raising financially-literate teenagers will set them up for retirement planning success. Parents

can help them understand the basics of budgeting, saving smart, and working toward a financial goal.

From the money received as a birthday gift, to the part-time job income earned at the local grocery


store, teenagers need to understand what to do with the money they have in their hands before it burns

a hole in their pockets.

In Your 20s

Once you reach your 20s, you have more control over your income and what to do with it. While your

life as a financial independent adult is just beginning, complete with an actual salary and benefits, that

salary is likely going to be on the lower side. Combined with student loan debt and full living expenses,

having developed money management and saving skills as a child are essential to maintaining financial

independence.

While retirement seems to be a long way off, its easy to move financial planning to the side--and credit

cards to the front. The younger you are, however, the more savings power you have thanks to

compound interest. A few dollars saved today can mean thousands of dollars later, and time is very

much on your side. Manage your credit wisely, set a practice of saving before you spend, and get the

jump on retirement planning that so many wish they had had.

In Your 30s & 40s

Kids. A mortgage. Minivan payments (even though you said youd never get one). As you continue to

build your credit, your family, and your life, there seems to be no shortage of bills to pay. Saving seems

to be even more challenging at this stage of the game. How can you think about retirement when your

toddlers dont even sleep through the night?

However, your earning power is on the rise! Your good financial habits have led to great credit, better

interest rates when you do have to borrow money for the big stuff, and your employer likely offers a

retirement savings plan at work. During this mid-career life stage, its a good time to set a retirement

savings goal, and enlist the help of a financial professional to help you reach it.

In your 50s & 60s

During your 50s, your life becomes less about the kids (who are more independent or out of the house

altogether) and more about you. You can focus more on your career and put more energy into what you

want, both for today and for the future. If you havent already, decide on your planned retirement age;

determine if your savings is adequate or on track; and tackle any retirement planning catchup you may

need by accelerating your saving and investing.


In your 60s, you can finally see retirement on the horizon. The time has actually come to plan that trip to

Italy; to meet that first grandchild; and to downsize from that big house. The time has also come to

better research your Social Security benefits (and when its best to start accessing them), Medicare

coverage and long term care options.

In your 70s & Beyond

Youve made it! You have retired with financial security and a lifetime of memories. Now its time to

make sure you protect what youve achieved for the people you love. Take your will out of the filing

cabinet and ensure it is up to date and still reflects your intentions. Name a power of attorney, and

settle any inheritance or taxation concerns you may have with a professional. More importantly its time

to enjoy your retirement, and because of your diligence, retirement is going to be one more adventure.

National Retirement Planning Week 2018 may be the opportunity you need to get back on track with your financial goals. Now that youve been presented with some items to think about, please visit www.RetireonYourTerms.org, which features life-stage specific resources and tools to assist Americans achieve their long-term financial goals, and keep an eye out for additional ways to #RethinkRetirement during National Retirement Planning Week.


POSITION STATEMENT

AMERICAN ACADEMY OF ACTUARIES | 1850 M STREET NW, SUITE 300, WASHINGTON, D.C. 20036 | 202-223-8196 | WWW.ACTUARY.ORG

RETIREMENT INCOME OPTIONS in Employer-Sponsored Defined Contribution PlansTHE AMERICAN ACADEMY OF ACTUARIES SUPPORTS POLICY AND EDUCATIONAL INITIATIVES THAT INCREASE THE AVAILABILITY OF RETIREMENT INCOME OPTIONS within employer-sponsored defined contribution (DC) plans. Such options, based upon actuarial principles such as longevity pooling and other risk mitigation strategies, can help retirees manage their financial security over their remaining lifetime.

Retirement income options could improve retirement security for millions of Americans by

providing more predictable income in retirement; some solutions can also relieve retirees of the

burden of managing investments, a task for which many may not be well-equipped. By taking

advantage of longevity risk pooling and institutional pricing beyond what may be available in

the individual market, employer-sponsored DC plans can offer these options in a cost-effective

manner.

By offering retirement income and longevity risk management options in DC plans, employers can

give working Americans additional tools to enhance their retirement security and financial well-

being. The American Academy of Actuaries supports this goal through the development of related solutions, tools, policies, and education and stands ready to assist policymakers in their development.

The Value of Retirement Income OptionsThere is a clear public interest in broad retirement security across the population. Historically,

defined benefit (DB) plans were a key component of employer-provided retirement benefits,

under which the employer made all or most of the contributions, investments were managed

by the plan sponsor, and benefits were provided as guaranteed lifetime income. By pooling the

longevity risk of its employees, an employers contributions could be efficiently converted into

lifetime income for employees by assuming the average life expectancy for the group of employees

as a wholebenefits that were not paid to those who did not live as long as expected were

available to pay to those who lived longer than expected.

OCTOBER 2017

http://www.actuary.org

RETIREMENT INCOME OPTIONS IN EMPLOYER-SPONSORED DEFINED CONTRIBUTION PLANS WWW.ACTUARY.ORG

With the shift to DC plans as the primary, and in many cases, the only source of employer-

provided retirement benefits, participants typically receive benefits in the form of a lump sum

of the accumulated account value at retirement. This requires individuals to manage their own

lifetime income, investment, and longevity risks.

The Actuaries Longevity Illustrator (jointly sponsored by the American Academy of Actuaries and

the Society of Actuaries) shows that the likelihood of any one individual living much longer than

his or her life expectancy is significant. Without longevity risk pooling, an individual planning

for this possibility would need to plan for a longer-than-average lifetime and potentially have

significantly less monthly income in retirement. Similarly, without the benefit of institutional

pricing, the costs to provide the desired level of income would be greater (or equivalently, the

amount of income that could be obtained with a fixed account balance would be smaller).

Needed SolutionAlthough there is no single solution to the challenge of Americans retirement financial security,

DC plan participants could benefit from lifetime income or longevity management options

with respect to at least a portion of the account balance. These options could be permitted or

encouraged through guidance from the Department of Labor (DOL) and provided by employers,

insurance companies, fund managers, and others.

One of the principal risks in managing retirement incomelongevity riskis that income might

not last a lifetime. An annuity option that provides a lifetime incomea specified income as long

as the retiree livesaddresses this risk precisely. Such an approach not only provides longevity

protection but also typically relieves the retiree of investment risk. Another approach to lifetime

income is an option t

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