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TELL YOUR SENATORS: SAY NO TO THE SECURE ACT
We know you probably didn’t know about the SECURE Act, because Congress doesn’t like to highlight outright giveaways. (And isn’t it funny how often these names for bills mean the opposite?)
But the SECURE Act would end liability for annuities brokers if they take your retirement savings and go out of business, leaving you with nothing. Sound bad? We thought so.
Please sign our petition and keep an eye out for further chances to take action opposing this finance industry windfall!
Here’s the long version: The bill is actually called the Setting Every Community Up for Retirement Enhancement Act. Most of what’s included in the bill is actually harmless, and some of it is even helpful. However….
The key provision, Section 204, concerns annuities. Financial interests are so eager to get their hands on the trillions of dollars in 401(k) plans. (It’s the primary reason why, no matter what else they pretend it’s about, conservatives from both parties are so willing to undermine Social Security.)
And here’s the part that’s so very, very bad for consumers -- and why CUFF strongly urges you to sign the petition.
The main reason why annuities aren’t part of your company’s 401(k) plan is that right now, if your plan administrator gives employees the option of an annuity that ends up going out of business or ripping off workers, they can be held liable.
Under the SECURE Act, they can’t. Now, think about that.
Think back to 2008 and what happens when banks and financial interests aren’t held liable. Imagine the kind of special interests who looked at the existing law and thought, “Gee, we really need to make it easier to rip people off without anyone being held accountable.
This is why we really, really want you to sign the petition.
I will close with these nuggets of information:
The Washington Business Journal reports that D.C.-based annuities “education and advocacy nonprofit group” the Alliance for Lifetime Income is sponsoring this year’s Rolling Stones tour. They are insurance industry lobbyists. Why the sudden PR push? This bill, no doubt.
I once worked for a man who made hundreds of millions in the insurance industry. You know what he told me? “Stay away from annuities.” He said they were for big players, not individuals. Too complicated to make an informed choice for most people, he said.
I will hasten to add that not all annuities are bad. But some annuities are sort of the adjustable-rate mortgages of the annuity world, where the language is so dense, you won’t know exactly what you’re buying and may not get the payoff you were promised -- and nothing will happen to the people who lied to you! As written, the bill doesn’t protect consumers from low-quality plans..
Rep. Richard Neal (D-Mass) has been trying to pass this with Republicans on behalf of the annuities industry for years. The only reason it didn’t pass this time is because Sen. Ted Cruz insisted on including a financial perk for homeschoolers.
Sign the bill and let your Senator know informed consumers are paying attention.
Thanks,
Susan Madrak
Consumer United For Fairness
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