NAVA Lauds Introduction of Critical Retirement Security Legislation
Today, Reps. Earl Pomeroy (D-ND) and Ginny Brown-Waite introduced H.R. 2748, the Retirement Security Needs Lifetime Pay Act -- legislation that encourages retirees to receive a portion of their retirement savings in the form of guaranteed lifetime income. Rep. Pomeroy announced the introduction of the legislation this morning at NAVA's 2009 Government & Regulatory Affairs Conference in Washington, D.C.
"This legislation is a huge step in the right direction in giving Americans the ability to bolster their retirement security with guaranteed lifetime paychecks," said Cathy Weatherford, CEO and President of NAVA. "We all know there is a growing problem with Social Security - just last month the Treasury Department announced the system will go broke four years sooner than we thought if we don't make dramatic changes. Now more than ever, Americans need to plan long term, and to have the peace of mind that only lifetime payments can deliver. I commend both Reps. Pomeroy and Brown-Waite for their commitment to helping Americans have more financial security in retirement."
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Specifically, the Retirement Security Needs Lifetime Pay Act gives a 50-percent tax exclusion on the annual income from a non-qualified lifetime annuity, up to $10,000 per year. Also tax exempt is 25 percent of income payments from Individual Retirement Accounts (IRAs) and qualified retirement plans other than defined benefit plans. The bill also excludes the value of longevity insurance from amounts subject to required minimum distributions while clarifying the taxation of payments from partially annuitized deferred annuity contracts.
About NAVA: NAVA, the Association for Insured Retirement Solutions®, is a non-profit trade association dedicated to promoting consumer confidence in the value and viability of insured retirement solutions, including annuity and variable life insurance products. NAVA pursues advocacy on federal policy matters that affect the annuities business directly, provides informational resources to members and the public, and protects customers by encouraging adherence to the highest ethical standards by all participants in the financial services industry. NAVA membership is comprised of insurance companies, asset managers, service providers and distribution firms, including broker dealers and banks. For more information on NAVA, visit www.NAVAnet.org.
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