NAIFA Testifies at NCOIL on State-Run Retirement Plans

NAIFA Director of Government Relations Steve Kline recently testified before the Life Insurance and Financial Planning Committee of the National Council of Insurance Legislators (NCOIL) on the issue of state-run retirement plans.
Kline told the legislators of NAIFA’s reservations about legislation to create state-run plans that would compete with existing private-sector plans. NAIFA acknowledges that many Americans are not saving enough for retirement and supports efforts to bolster retirement planning, Kline said. But many of the state-run plan proposals address the problem as if it were rooted in consumers’ lack of access to retirement products, which is not the case.
“There already exists a strong, vibrant private sector retirement plan market that offers diverse, affordable options (including 401(k) and 403(b) plans as well as both traditional and Roth IRAs) to individuals and employers,” Kline said in his written remarks. “If a retirement plan is not offered at work, employees have ready access to low cost options through local financial advisors and financial institutions.”
Government resources would be better allocated to provide retirement-planning consumer education and outreach, he added.
Kline gave multiple examples of NAIFA members who have provided individuals and small businesses with advice and customized retirement planning packages they would not be able to receive from a one-size-fits-all, state-run plan.
“Advisors can help any client set up any plan,” Kline said. “Advisors who specialize in such plans are very easy to find, and those representatives can answer all the questions a person may need to ask.”
  • Posted July 18, 2018 IN

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