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HR 2921 IH

To require the Secretary of the Treasury to conduct a study on the feasibility of authorizing the Department of the Treasury to create and issue annuity products, and for other purposes.

June 28, 2007

Mr. COOPER introduced the following bill; which was referred to the Committee on Financial Services

To require the Secretary of the Treasury to conduct a study on the feasibility of authorizing the Department of the Treasury to create and issue annuity products, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Treasury Annuity Study Act of 2007'.

SEC. 2. ANNUITY STUDY.

(a) Findings- The Congress finds as follows:

(1) The personal savings rate in the United States is at historic lows.

(2) It is in the national interest to decrease reliance on foreign purchasers of debt.

(3) There is a lack of transparency among annuity products currently available on the market.

(4) Annuity savings products are underutilized by Americans as a means of saving for retirement.

(b) Study Required- The Secretary of the Treasury shall conduct a study on the feasibility of authorizing or requiring the Department of the Treasury to create annuity products and sell them to United States citizens.

(c) Factors and Criteria- Annuity products considered by the study conducted under subsection (b) shall adhere to the following guidelines:

(1) Such products shall not pre-empt private market products but rather shall serve as an industry benchmark, with a goal of enhancing private markets.

(2) The products shall be backed by the full faith and credit of the United States government and offer purchasers the security of such backing.

(3) The products shall be maximally transparent with a goal of disclosing to prospective purchasers enough information to make sound financial decisions.

(4) The products shall be actuarially sound, with innovative features comparable to other annuity products on the market.

(d) Other Relevant Issues- The study conducted under subsection (b) shall examine any questions the Secretary considers relevant to the topic and guidelines, including all relevant measures of market feasibility.

(e) Report- The Secretary of the Treasury shall submit a report to the Congress before the end of the 1-year period beginning on the date of the enactment of this Act containing the findings and conclusions of the study conducted under subsection (b), together with such recommendations for legislative or administrative action as the Secretary may determine to be appropriate.