If approved by Congress, the pending pension reform bill would add myriad new products and services to the portfolios of insurance industry officials, but Senate Republicans threaten to impede that approval by attempting to include estate tax reform in the legislation.
The pension legislation, H.R. 2830, is being drafted by a conference committee seeking to reconcile different House and Senate versions. Besides reforming the defined benefit system, the bill is expected to contain a number of conditions extending expiring tax cut provisions and permitting insurers to enhance products they can offer in the defined contribution market.
Insurance agents also strongly support a stipulation in the House bill that will protect plan sponsors from fiduciary liability when investment advice from an independent investment advisor has adverse results.
Another requirement highly sought by the insurance industry and contained in the House bill would allow cash buildups in life insurance and annuity contracts to be used to fund long term care costs, pay the premiums for LTC insurance policies, or allow combinations of these products.
