FOR IMMEDIATE RELEASE: 
April 3, 2007

CONTACT:
Idil Oyman, 202-777-3518
Kelly Alderson, 202-777-3542

Senator Snowe and Senator Collins Support Bill to Encourage “Paycheck for Life”
New Legislation Would Help Americans Reach Retirement Security

WASHINGTON –Americans for Secure Retirement Chairman Harvey Blitz today released the following statement commending both Senator Olympia Snowe (R-ME) and Senator Susan Collins (R-ME) for supporting The Retirement Security for Life Act:

“Today, Senator Snowe and Senator Collins took an important step forward to address the anxiety felt by many Americans about their financial outlook during retirement by supporting The Retirement Security for Life Act.

“With Social Security replacing less and less of pre-retirement income, pension coverage on the decline and lifespans on the rise, people need to plan for other sources of income in retirement. By providing a strong tax incentive for Americans to use lifetime annuities as part of their retirement portfolio, policymakers are helping people secure a steady “paycheck” for life.

“This is especially critical for the 70 million American workers who lack access to any employer-based retirement benefits and will have to take saving and planning entirely into their own hands.  This burden falls disproportionately on women, minorities and rural Americans.

“Lifetime annuities are the only private investment vehicles that offer a guaranteed stream of income that cannot be outlived, so The Retirement Security for Life Act helps to insure a retiree’s savings does not run out during retirement, much like a pension.

“This legislation is a critical component of retirement policy and we are pleased that Senator Snowe and Senator Collins have made helping Americans secure a financially sound retirement a priority on Congress’ middle class agenda.”

Americans for Secure Retirement (ASR) is a coalition of 39 members representing women’s, small business, agriculture, Hispanic, African American, and consumer groups, as well as life insurance companies, all united to promote incentives for annuitization of savings and/or assets as a way to secure a steady stream of income for life. Specifically, ASR supports The Retirement Security for Life Act, which would provide a 50 percent tax exclusion on the income from the payout of a lifetime annuity, up to $20,000 per year.  Thus, for example, a taxpayer in the 25 percent tax bracket who excluded this amount from income would save $5,000.  For more information on ASR please visit: www.paycheckforlife.org.