A key producer group says a package of savings account bills could cut savings and threaten existing employer-sponsored retirement plans.[@@]
The National Association of Insurance and Financial Advisers, Falls Church, Va., put out a statement arguing one of the bills, S. 545, which would create “lifetime savings accounts,” could combine with another bill, S. 546, which would create “retirement savings accounts” could depress long-term savings efforts and eliminate any incentive employers have to sponsor retirement plans.
A third bill, S. 547, would create a system of employer retirement savings accounts.
The 3 bills, which together make up the “Savings Account Vehicle Enhancement” initiative, were introduced in the Senate by Sens. Craig Thomas, R-Wyo., and Jon Kyl R-Ariz.
Similar legislation was introduced in the House by Rep. Sam Johnson, R-Texas.
NAIFA says it is most worried about LSAs.
“LSAs are a prescription for lifetime spending instead of lifetime savings,” NAIFA says. “There is little or no incentive to save for the long term with LSAs.”