[Congressional Record (Bound Edition), Volume 159 (2013), Part 8]
[Senate]
[Pages 11300-11302]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          SAFE RETIREMENT ACT

  Mr. HATCH. Mr. President, I ask unanimous consent to have printed in 
the Record the following seven letters expressing support for S. 1270, 
the Secure Annuities for Employee, SAFE, Retirement Act of 2013: 
Committee of Annuity Insurers, Great American Life Insurance Company, 
Insured Retirement Institute, Investment Company Institute, 
Metropolitan Life Insurance Company, National Association for Fixed 
Annuities, and the National Association of Insurance and Financial 
Advisors.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                           Davis & Harman LLP,

                                     Washington, DC, July 3, 2013.
     Re SAFE Retirement Act of 2013.

     Hon. Orrin Hatch,
     U.S. Senate,
     Washington, DC.
       Dear Senator Hatch: On behalf of the Committee of Annuity 
     Insurers\1\ I am writing to express the Committee's 
     appreciation of your effort to further the retirement 
     security of American workers by introducing the SAFE 
     Retirement Act of 2013. As the Act recognizes, Americans face 
     many obstacles in preparing for and living in retirement. 
     Prior to retirement, they must attempt to accumulate adequate 
     savings while also understanding that at retirement they will 
     need to convert those savings into an income stream that will 
     last the rest of their lives.
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     \1\The Committee of Annuity Insurers is a coalition of 28 of 
     the largest and most prominent issuers of annuity contracts, 
     representing approximately 80% of the annuity business in the 
     United States. The Committee was formed in 1981 to address 
     federal legislative and regulatory issues relevant to the 
     annuity industry and to participate in the development of 
     federal tax and securities policies regarding annuities.
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       There is no one approach that will fully address these 
     challenges. Rather, Americans need a number of options to 
     help them achieve their retirement goals. The introduction of 
     legislation such as the SAFE Retirement Act is an important 
     contribution to the current and future public dialogue on 
     retirement security.
       Of course, a key element of retirement security is 
     guaranteed lifetime income. Life insurance companies and the 
     annuities they issue pool the longevity risks of large groups 
     of individuals and thereby provide guaranteed lifetime income 
     to those individuals.

[[Page 11301]]

     Annuities can also help individuals accumulate retirement 
     savings in a manner that suits their personal approach to 
     saving. As a result, annuities are, and should remain, a key 
     means of assuring retirement security, as the SAFE Retirement 
     Act recognizes.
       The Committee of Annuity Insurers commends you for your 
     efforts on the SAFE Retirement Act, and we look forward to 
     working with you and your staff to improve the retirement 
     security of all Americans.
           Sincerely,
                                               Joseph F. McKeever,
     Counsel to the Committee of Annuity Insurers.
                                  ____

                                                    Great American


                                       Life Insurance Company,

                                     Cincinnati, OH, July 3, 2013.
     Re Safer Pension Act of 2013

     Hon. Orrin Hatch,
     U.S. Senate,
     Washington, DC.
       Dear Senator Hatch: After participating in a NAFA call with 
     Preston Rutledge on July 3, I am writing to express that I 
     appreciate your effort to further the retirement security of 
     American workers by introducing the Safer Pension Act of 
     2013. As the Act recognizes, Americans face many obstacles in 
     preparing for and living in retirement. Prior to retirement, 
     they must attempt to accumulate adequate savings. After they 
     retire, they must address the challenge of assuring that the 
     savings they accumulated while working will provide them with 
     income for the rest of their lives.
       There is no one approach that will fully address these 
     challenges. Rather, Americans need a number of options to 
     help them achieve their retirement goals. The introduction of 
     legislation, such as the Safer Pension Act, is an important 
     contribution to the current and future public dialogue on 
     retirement security.
       Of course, a key element of retirement security is 
     guaranteed lifetime income. life insurance companies and the 
     annuities they issue pool the longevity risks of large groups 
     of individuals and thereby provide guaranteed lifetime income 
     to those individuals. Fixed annuities can also help 
     individuals accumulate retirement savings in a manner that 
     suits their personal approach to saving. As a result, 
     annuities are, and should remain, a key means of assuring 
     retirement security, as the Safer Pension Act recognizes.
       The National Association for Fixed Annuities and its member 
     companies commend you for introducing the Safer Pension Act 
     and we look forward to working with you and your staff to 
     improve the retirement security of all Americans.
           Sincerely,

                                             Malott W. Nyhart,

                                      Divisional President, Single
     Premium/Financial Institutions Division.
                                  ____



                                 Insured Retirement Institute,

                                     Washington, DC, July 3, 2013.
     Re SAFE Retirement Act of 2013

     Hon. Orrin G. Hatch,
     U.S. Senate,
     Washington, DC.
       Dear Senator Hatch: The Insured Retirement Institute 
     (IRI)\1\ commends your leadership on increasing retirement 
     security of American workers by introducing the SAFE 
     Retirement Act of 2013. The current state of retirement 
     savings readiness in America is at crisis levels and the need 
     for Americans to insure against the risk of outliving their 
     assets has never been greater.
       Seventy-nine million Baby Boomers today face immediate and 
     unprecedented retirement income challenges--challenges that 
     simply did not exist in earlier generations. Research shows 
     nearly half of Boomers, over 30 million Americans, are ``at 
     risk'' for inadequate retirement income, not having 
     sufficient guaranteed lifetime income. These challenges have 
     been created by the shift from defined benefit plans to 
     defined contribution plans, longer life spans, increased 
     medical costs, and inadequate savings rates. In fact, for a 
     married couple both age 65 now, a 60 percent chance exists 
     that one spouse will live to age 90, and a 30 percent chance 
     exists that one will live to age 95.
       As a result of these needs, the public policy focus on 
     enhancing retirement security in America has never been 
     greater. Along with other retirement security legislative and 
     regulatory initiatives, the SAFE Retirement Act is an 
     important contribution to efforts to enable Americans to 
     achieve financial security in their retirement years.
       Annuities offered by IRI's insurer, broker-dealer, and bank 
     members provide retirees guaranteed lifetime income and 
     should remain a key component of retirement financial 
     planning, as the SAFE Retirement Act recognizes. While many 
     Americans are at risk for having inadequate retirement 
     income, according to IRI research, Baby Boomers who own 
     insured retirement products, including all types of 
     annuities, have higher confidence in their overall retirement 
     expectations, with nine out of ten believing they are doing a 
     good job preparing financially for retirement.
       Because annuities help address numerous risks retirees 
     face, including longevity risk and inflation risk, financial 
     advisors and Boomers are increasingly seeing the need for 
     lifetime income provided by annuities, particularly middle-
     income families who make up the bulk of annuity owners. A 
     number of IRI research reports show that Boomers who own 
     annuities have more confidence in their financial security in 
     retirement and are using more annuities to meet their 
     retirement income needs.
       73 percent of annuity owners believe that annuities are a 
     critical part of their retirement strategy.
       Baby Boomer annuity owners are more likely to engage in 
     positive retirement planning behaviors than Baby Boomer non-
     annuity owners, with 68 percent having calculated a 
     retirement goal and 63 percent having consulted with a 
     financial advisor.
       Nine out of ten female Boomer annuity owners are confident 
     they will have a comfortable retirement.
       84 percent of financial advisors say they are having more 
     retirement income discussions with clients.
       71 percent of advisors say they had a client request to 
     purchase an annuity during the last year.
       For these reasons, IRI and its member companies commend you 
     for introducing the SAFE Retirement Act. We support 
     improvements to the current employer retirement plan system 
     resulting in greater simplification, increased participation 
     and savings by workers, and access to lifetime income 
     products within retirement plans.
       As Congress considers tax reform, we appreciate your 
     continued support of the current retirement security system. 
     We look forward to working with you and your staff to improve 
     the retirement security of all Americans.
           Sincerely,

                       Catherine J. Weatherford,

                                                  President & CEO.

       \1\The Insured Retirement Institute (IRI) is the leading 
     association for the retirement income industry and has been 
     called the ``primary trade association for annuities'' by 
     U.S. News and World Report. IRI proudly leads a national 
     consumer coalition of more than twenty-five organizations and 
     is the only association that represents the entire supply 
     chain of insured retirement strategies. Our members include 
     major life insurers, broker-dealers, banks, asset managers 
     and financial advisors. We currently have over 500 member 
     companies and provide member benefits to more than 150,000 
     financial advisors and 10,000 home office financial 
     professionals. As a not-for-profit organization, IRI provides 
     an objective forum for communication and education, and 
     advocates for sustainable retirement solutions Americans need 
     to help achieve a secure and dignified retirement.
                                  ____



                                 Investment Company Institute,

                                     Washington, DC, July 9, 2013.
     Hon. Orrin Hatch,
     Ranking Member, Committee on Finance, U.S. Senate, Hart 
         Office Building, Washington DC.
       Dear Ranking Member Hatch: I am writing to applaud your 
     ongoing efforts to strengthen the U.S. retirement system. You 
     have championed throughout your career public policies that 
     help Americans save for their retirement years. Nearly two 
     decades ago, you authored, along with Sen. David Pryor (D-
     AK), the Pension Simplification Act of 1995. More recently, 
     you strongly supported retirement savings plan improvements, 
     including provisions in the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 and the Pension Protection Act of 
     2006, which made permanent the increased contribution limits 
     for IRAs and other qualified plans, including 401(k)s. 
     Building upon the system's tax incentives, plan regulations, 
     and innovation, these improvements have helped Americans 
     accumulate $20.8 trillion for retirement, including $11.1 
     trillion in defined contribution (DC) plans and individual 
     retirement accounts (IRAs).\1\ More than 80 million U.S. 
     households have accumulated retirement savings under 
     employment-based retirement plans and IRAs.\2\
       We understand that you plan to introduce the SAFER Pension 
     Act, which aims to build on the strengths and successes of 
     the U.S. retirement system, so that it works even more 
     effectively to help American workers and their families 
     prepare for secure retirements. While we are still reviewing 
     the draft language that was recently shared with us, we note 
     that your bill targets several key areas for improving the 
     system, such as: making it easier and more cost effective for 
     small business owners to offer 401(k) retirement plans to 
     their employees; encouraging employers to enroll workers 
     automatically at higher levels of savings and to escalate the 
     savings more substantially than is perceived appropriate 
     under current law; and enabling greater use of electronic 
     delivery of plan information and tools to help workers 
     understand their savings options and make sound decisions.
       We look forward to working with you and sharing our ideas 
     for further improving these and other provisions in this 
     important piece of legislation, to ensure their effectiveness 
     and the product neutrality that has helped create our 
     flexible and innovative retirement system.
       Thanks to the strengths of our system, successive 
     generations of American retirees have been better off than 
     previous generations.\3\ The Institute stands ready to assist 
     you in continuing this trend by promoting

[[Page 11302]]

     greater retirement savings opportunities for American 
     workers. With very best regards.
           Sincerely,
                                              Paul Schott Stevens,
                                                  President & CEO.
       \1\See Investment Company Institute, ``The U.S. Retirement 
     Market, First Quarter 2013'' (June 2013), available at 
     www.ici.org/info/ret_13_q1_data.xls.
       \2\See Holden and Schrass, ``The Role of IRAs in U.S. 
     Households' Saving for Retirement, 2012,'' ICI Research 
     Pespective 18, no 8 (December 2012), Figure 1, p. 3, 
     available at www.ici.org/pdf/per18-08.pdf.
       \3\See Brady, Burham, and Holden, The Success of the U.S. 
     Retirement System, Investment Company Institute (December 
     2012), pp. 10-14, available at www.ici.org/pdf/
ppr_12_success_retirement.pdf.
                                  ____



                                                      MetLife,

                                     Washington, DC, July 8, 2013.
     Hon. Orrin Hatch,
     U.S. Senate,
     Washington, DC.
       Dear Senator Hatch: MetLife applauds your introduction of 
     the Secure Annuities for Employee (SAFE) Retirement Act of 
     2013. In introducing this bill, you have highlighted the 
     importance of guaranteed income throughout retirement for 
     millions of Americans. We agree this is of critical 
     importance.
       The SAFER Pension Act also serves to increase attention to 
     a number of key challenges, including the importance of 
     stable pension benefit funding, the importance of lifetime 
     income to retirement security, and the importance of 
     regulatory simplification for plan sponsors, all of which 
     strengthen the foundation of our overall retirement system.
       For many Americans, worries about their financial future 
     are intensified by weakening employer-based and public safety 
     nets--and by inadequate levels of personal savings and 
     retirement income protection. MetLife believes that 
     policymakers, insurers and employers all play an important 
     role in revitalizing and establishing programs that can 
     provide certainty in today's uncertain world.
       In 1921, MetLife became the first life insurance company to 
     develop and offer a group annuity contract to fund defined 
     benefit plans and provide guaranteed income to employees at 
     retirement. We have continued this tradition of innovation 
     more recently with group annuity contracts designed to 
     provide guaranteed income for defined contribution plans. We 
     appreciate that the SAFER Pension Act has helped to highlight 
     the positive role annuities can play, and look forward to 
     working together in this retirement security reform effort.
           Sincerely,
                                                  Peter R. Pastre,
     Vice President.
                                  ____

                                              National Association


                                          for Fixed Annuities,

                                      Milwaukee, WI, July 5, 2013.
     Re Secure Annuities for Employee (SAFE) Retirement Act of 
         2013.

     Senator Orrin Hatch,
     Hart Office Building,
     Washington, DC.
       Dear Senator: NAFA, the National Association for Fixed 
     Annuities, applauds your efforts to provide a safe and 
     reliable pension plan for employees and supports the goals of 
     the ``Secure Annuities for Employee (SAFE) Retirement Act of 
     2013.'' Thank you, too, for recognizing the valuable role 
     fixed annuities play to insure retirement. Our nation's 
     retirement security depends upon commitments like yours so 
     that America's workers can look forward to the retirement of 
     their dreams with a guaranteed and steady income.
       Providing state and local governments a fixed annuity 
     option issued by an insurance company not only guarantees 
     lifetime income, but the industry's record of strength and 
     solvency also insures that pensions are protected from market 
     crises and cannot be underfunded. In addition, the effective 
     and vigorous regulation of the annuity industry by the state 
     insurance departments has been demonstrated day after day and 
     year after year by high consumer satisfaction and the ever 
     increasing purchase of fixed annuities. The fixed annuity 
     industry already secures the future for millions of 
     American's and continues to be one of the most reliable and 
     steady financial services sector throughout this country's 
     history.
       NAFA looks forward to continue working with your office as 
     the bill progresses. NAFA members represent over 84% of the 
     fixed annuities sold through independent distribution and its 
     Board of Directors is pleased to support retirement income 
     security for all Americans.
           Sincerely,
                                                      Kim O'Brien,
     President & CEO.
                                  ____

                                           National Association of


                             Insurance and Financial Advisors,

                                   Falls Church, VA, July 2, 2013.
     Re SAFER Pension Act of 2013.

     Hon. Orrin Hatch,
     Hart Office Building,
     Washington, DC.
       Dear Senator Hatch: The National Association of Insurance 
     and Financial Advisors (NAIFA) applauds your continued 
     leadership to encourage retirement savings. We look forward 
     to working with you on the ``Secure Annuities for Employee 
     Retirement Pension Act of 2013'' and other initiatives to 
     improve the savings programs available, for both public and 
     private employee participants.
       Founded in 1890 as The National Association of Life 
     Underwriters (NALU), NAIFA is one of the nation's oldest and 
     largest associations representing the interests of insurance 
     professionals from every Congressional district in the United 
     States. NAIFA and its members recognize the importance of 
     individuals and families planning and saving for retirement 
     and the significance of employer sponsored plans as a 
     necessary component of that planning, along with life 
     insurance and annuity products. We also are supportive of 
     efforts to assure that middle market investors continue to 
     have access to professional services and advice and they have 
     a choice of financial products that will meet their financial 
     needs and objectives.
       NAIFA looks forward to maintaining a continued dialogue 
     with you, and members of Congress on both sides of the aisle, 
     to assure employees, employers, and our members who provide 
     services to them can effectively and affordably save for 
     their retirement needs.
       Thank you again for your leadership.
           Sincerely,
     Robert O. Smith, J.D., CLU, ChFC, LIC,
       President.

                          ____________________