Should Annuity Products Get a Fiduciary Safe Harbor? Bloink & Byrnes Go Thumb to Thumb
December 6, 2018 by Ronald Pechtimaldjian
The set of tax reform bills collectively known as “Tax Reform 2.0” has been steadily making its way through Congress, and includes many retirement-related provisions that could substantially impact clients.
One of the more recent amendments proposed by Republicans in the House would provide for a fiduciary rule safe harbor for retirement plan sponsors who include lifetime income provisions as an option for plan participants. This safe harbor would provide specific steps that the plan sponsor would be required to take in order to avoid future fiduciary liability claims stemming from an annuity product’s performance.
Although the overall tax reform package is unlikely to be approved by the Senate because of a variety of provisions included within the legislation, making it easier to include lifetime income options within defined contribution plans is an idea that has frequently been debated in Congress.
We asked Professors Robert Bloink and William Byrnes, who are affiliated with ALM’s Tax Facts, and hold opposing political viewpoints, to share their opinions about this fiduciary safe harbor provision.
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