Members of the House today passed a version of H.R. 6757 that includes a retirement plan annuitization provision sought by the American Council of Life Insurers (ACLI), the Insured Retirement Institute (IRI), and other financial services organizations.
The current draft of the “Family Savings Act of 2018″ bill includes a replacement for Section 203.
The old version of Section 203 calls for an independent organization to review the Pension Benefit Guaranty Corp. (PBGC) premiums.
The version of Section 203 in the bill that passed in the House would create a fiduciary safe harbor for defined contribution retirement plan sponsors or other fiduciaries when the fiduciaries choose a company to provide a plan annuitization option.
A copy of a file that shows the new version of Section 203 is available here.
What was the vote on H.R. 6757 like?
House members voted 240-177 to pass the bill.
Republicans voted for the bill 230-0.
Democrats voted 10-177 against the bill.
The list of Democrats who voted for the bill includes, Rep. Jared Polis, D-Colo., who is running for governor in Colorado. Polis has voted with liberal Democrats on most issues.
What is an ‘annuitization option’?
An annuitization option is a feature in a 401(k) plan or other defined contribution retirement plan that lets the participant convert part or all of the participant’s account value into a stream of income.