House Majority Leader John Boehner, R-Ohio, said on April 27 that progress is being made in crafting compromise defined benefit pension reform legislation and vowed there would be a provision in the bill allowing insurance agents to provide investment advice to their 401(k) customers "in some form."
Boehner made his comments in an appearance before the annual National Legislative Conference and Convention of the Independent Insurance Agents and Brokers of America.
While the insurance industry plays a key role in funding defined benefit plans, its major interests in the legislation are provisions that add a long term care rider to annuities, provide for automatic enrollment in 401(k) programs for new employees, and allow agents to provide investment advice in cases where the insurance company they work for administers a 401(k) program for a company.
The industry also wants included in the final bill language that would codify current tax treatment of corporate-owned life insurance and establish certain best practices for its sale.
In comments to National Underwriter before he spoke to the agents, Boehner said he has supported reducing the conflict-of-interest provisions in ERISA and therefore allowing agents to provide investment advice, for seven years.
