Letter on "Retirement Security for Life Act of 2007"

May 4, 2007

The Honorable Gordon Smith
Ranking Member, Special Committee on Aging
United States Senate
Washington, DC 20510

Dear Senator Smith:

On behalf of the U.S. Chamber of Commerce, the world's largest business federation representing more than three million businesses and organizations of every size, sector, and region, I thank you for introducing S. 1010, the "Retirement Security for Life Act of 2007." This bipartisan bill would provide a 50 percent deduction on up to $20,000 of taxable income from a lifetime income annuity.

As the nation's 77 million baby boomers begin to retire, they will start to draw down their retirement savings. The Retirement Security for Life Act would encourage taxpayers to convert these savings into lifetime income annuities. These products provide steady payments for the remainder of the purchaser's life and help reduce the risk of losing one's investments in a market downturn or outliving one's nest egg.

With more U.S. workers participating in defined contribution programs, this legislation would provide retirees with a guaranteed source of monthly income that could not be outlived. The Chamber appreciates your leadership and looks forward to working with you on this issue.

Sincerely,
R. Bruce Josten

Cc: Senator Clinton
Senator Collins
Senator Conrad
Senator Crapo
Senator Snowe