Matters of Interest - Volume 41

Rating Agencies’ View of the U.S. Life Insurance Industry
Due to concerns about the COVID-19 pandemic, increased market volatility, and the general
economic slowdown, three of four major ratings agencies changed their outlook for the U.S. life insurance industry from stable to negative during March and April of this year, while one agency maintained its stable outlook, citing the industry’s widely acknowledged strength of capital and liquidity. While there are uncertainties to be worked through, there is at present no reason to doubt the ability of the industry to weather these stressful social and economic times. (read more)

COVID-19: Employee Withdrawals from Qualified and Nonqualified Plans
The CARES Act eased requirements for withdrawals and loans from qualified plans to allow participants to access their accounts for reasons related to the coronavirus epidemic. No easing of distribution rules was provided to nonqualified plans. (read more)

Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act)
The SECURE Act requires that defined contribution plans, such as 401(k) plans, will have to include information on equivalent lifetime income streams derived from plan account balances in benefit statements annually once the DOL issues guidance on the parameters of such disclosure. (read more)