What Insurers Think of the Secure Act
February 25, 2020 by Nick Thornton
For years, the insurance industry and advocates for guaranteed income products worked to get a fiduciary sanctuary for employer sponsors of defined contribution plans who put annuities in investment menus. They got that sanctuary — or the annuity provider selection safe harbor — in the Setting Every Community Up for Retirement Enhancement Act. What happens now?
“I do think the safe harbor will create more interest from plan sponsors and drive uptake of existing options and some innovation,” said Sri Reddy, senior vice president in the retirement and income solutions unit of Principal Financial Group.
“But we are still a ways out,” he added. “We don’t know what the marketplace will accept, or what it will demand. And most recordkeepers don’t have the infrastructure to support annuities.”
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