Glory Days in New Jersey

Welcome to New Jersey, The Garden State, on a road sign.

Bruce Springsteen has been called the Pride of New Jersey.

That isn’t likely to change anytime soon. But there is a new reason for every Garden State resident to be proud, even the legendary rocker who lives in Colts Neck.

New Jersey recently became the 50th state to adopt a best interest standard. New Jersey’s new rule incorporates the enhanced consumer protections in the National Association of Insurance Commissioners (NAIC) updated model regulation on annuity transactions.

The rule, adopted by New Jersey Department of Banking and Insurance Commissioner Justin Zimmerman, enhances the standards financial professionals must follow and protects consumers’ access to, and information about, annuities, the only financial product in the marketplace that can provide guaranteed income for life. Thanks to this important consumer protection rule, every New Jerseyan will be in a strong position to achieve financial security and prosperity throughout retirement.

The NAIC model adopted by the states closely aligns with the Securities and Exchange Commission’s Regulation Best Interest. And, unlike the Department of Labor’s ill-advised fiduciary-only regulation, these harmonized measures ensure savers, particularly financially vulnerable middle-income Americans, can access information about annuities and information about other options for their retirement savings.

The DOL’s measure is similar to its failed 2016 regulation that, before it was struck down by a federal court, resulted in more than 10 million American workers’ accounts, with $900 billion in savings, losing access to professional financial guidance. A survey shows that retirement savers overwhelmingly want the freedom to work with any kind of financial professional who is offering products and services that meet their needs.

More than 20 million Americans will turn 65 by 2030. Now is definitely not the time to limit people’s options for retirement.

The U.S. Congress reaffirmed the importance of lifetime income when it passed legislation in 2019 and 2022 to make it easier for employers to include annuities in workplace retirement plans and simpler for savers and retirees to utilize annuities. With these enhanced state and federal consumer protections, savers from High Point to Cape May can be confident that financial professionals must act in the consumer’s best interest when offering recommendations about annuities.

Vince Ryan

Vince Ryan is Regional Vice President, State Relations at the American Council of Life Insurers (ACLI). He is responsible for state legislative and regulatory affairs in Delaware, New Jersey, Iowa, South Dakota and Wyoming. He joined the ACLI in 2019 from the Delaware Insurance Department.