Nearly 15,000 Americans Call on Congress to Act on Retirement Security

Concerned Citizens Sign Petition Supporting Retirement Security for Life Act

WASHINGTON, July 13 /PRNewswire/ -- In a sign of growing public concern over national retirement policy, nearly 15,000 Americans have signed a petition urging Congress to promote policies that help individuals manage retirement savings to provide income to last a lifetime by passing The Retirement Security for Life Act (H.R. 819/S. 381). This legislation would provide a tax incentive to encourage investment in some individual, after-tax savings in retirement vehicles like annuities that provide a steady "paycheck for life."

"The early swell of support for this petition illustrates that Americans are not only thinking about retirement savings, but also are looking for policymakers to develop smart policies to encourage people to better manage their retirement savings and income during retirement," said Shannon Hunt, a spokesperson for Americans for Secure Retirement. "Retirement security for Americans will only come if policy makers take a comprehensive approach, focusing on both the savings and income pieces of the equation."

The Retirement Security for Life Act would exempt individuals from paying federal taxes on one-half of the income (up to a maximum of $20,000 annually) generated by nonqualified annuities that make lifetime payments. For a typical American in the 25 percent tax bracket, this would provide an annual tax savings of up to $5,000. The petition, signed by 14,500 individuals and launched by Americans for Secure Retirement, was created to engage Americans in the retirement policy debate and demonstrate to lawmakers the widespread concern many have regarding retirement security. (A nonqualified annuity is purchased with after tax dollars and is not part of an employer-based qualified retirement plan or IRA).

"We have found that, as Americans become more educated about retirement policy, they are more likely to support legislation like H.R. 819 because it provides them options along with incentives to prepare wisely for retirement," Hunt said. "The grassroots support serves as a big pat on the back for the 58 members of Congress who already support this bill as well as a signal to others that annuitization is a critical part of the retirement security debate."

Currently 54 members of the House of Representatives are co-sponsors of H.R. 819, including a majority of House Ways & Means Committee members. In the Senate, the bill has four co-sponsors, with three members of the Senate Finance committee having signed on.

Americans for Secure Retirement is a coalition representing a broad cross section of interests including women's groups, rural organizations, consumer and taxpayer groups, and the life insurance industry. For more information about the coalition or their online petition, please visit: http://www.paycheckforlife.org/.