4 Bills That Could Boost Annuities in 2025

See the gallery for four annuity-related bills in play last year that could be reintroduced in the 119th Congress.

1. Automatic IRA Act of 2024

Introduced: Feb. 2

The bill, H.R. 7293, would generally require all but the smallest of employers to maintain an automatic retirement savings plan, into which employees would be automatically enrolled with the ability to opt out. "The bill would also require that participants with account balances of $200,000 or more be given the choice to receive up to 50% of their vested balance in the form of a protected, guaranteed lifetime income product," such as an annuity, according to IRI.

2. Labor Department Appropriations bill

A bill funding Labor and other departments for fiscal 2024 included a policy rider to prevent the DOL from using any appropriated funds to implement or enforce the “Retirement Security Rule,” which IRI maintains would "make it harder — and in many cases, impossible — [for investors] to access the guidance about products and products such as annuities."

IRI is one of several industry groups suing to block the rule, which is currently stayed. But if its legal fight fails, Republicans in Congress could again try to block enforcement through a spending bill.

3. Retirement Fairness for Charitable and Educational Institutions Act

Introduced: Aug. 31

The bill, S. 4917/H.R. 3063, proposes to allow 403(b) plans to use collective investment trusts and unregistered insurance company separate accounts. The bill changes securities laws that apply to variable annuity products offered through unregistered insurance company separate accounts, making them more cost-efficient for 403(b) plan participants to invest in.

4. Lifetime Income for Employees Act

Introduced: June 9, 2023

The bill, H.R. 3942, aims to broaden the use of lifetime income products as default investment options by eliminating a barrier in current Labor Department regulations. "This barrier currently restricts the use of certain investment options that do not meet specific liquidity requirements," IRI said. "The bill would allow plan sponsors to employ annuities that provide a guaranteed return on investment and have a delayed liquidity feature as a default investment vehicle for a portion of contributions made by a retirement saver who has not made investment selections."