Increasing Access to a Secure Retirement Act of 2017

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Increasing Access to a Secure 
Retirement Act of 2017''.

SEC. 2. FIDUCIARY SAFE HARBOR FOR SELECTION OF LIFETIME INCOME 
              PROVIDER.

    Section 404 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1104) is amended by adding at the end the following:
    ``(e) Safe Harbor for Annuity Selection.--
            ``(1) In general.--With respect to the selection of an 
        insurer and a guaranteed retirement income contract, the 
        requirements of subsection (a)(1)(B) will be deemed to be 
        satisfied if a fiduciary--
                    ``(A) engages in an objective, thorough, and 
                analytical search for the purpose of identifying 
                insurers from which to purchase such contracts;
                    ``(B) with respect to each insurer identified under 
                subparagraph (A)--
                            ``(i) considers the financial capability of 
                        such insurer to satisfy its obligations under 
                        the guaranteed retirement income contract; and
                            ``(ii) considers the cost (including fees 
                        and commissions) of the guaranteed retirement 
                        income contract offered by the insurer in 
                        relation to the benefits and product features 
                        of the contract and administrative services to 
                        be provided under such contract; and
                    ``(C) on the basis of such consideration, concludes 
                that--
                            ``(i) at the time of the selection, the 
                        insurer is financially capable of satisfying 
                        its obligations under the guaranteed retirement 
                        income contract; and
                            ``(ii) the relative cost of the selected 
                        guaranteed retirement income contract as 
                        described in subparagraph (B)(ii) is 
                        reasonable.
            ``(2) Financial capability of the insurer.--A fiduciary 
        will be deemed to satisfy the requirements of paragraphs 
        (1)(B)(i) and (1)(C)(i) if--
                    ``(A) the fiduciary obtains written representations 
                from the insurer that--
                            ``(i) the insurer is licensed to offer 
                        guaranteed retirement income contracts;
                            ``(ii) the insurer, at the time of 
                        selection and for each of the immediately 
                        preceding 7 plan years--
                                    ``(I) operates under a certificate 
                                of authority from the insurance 
                                commissioner of its domiciliary State 
                                which has not been revoked or 
                                suspended;
                                    ``(II) has filed audited financial 
                                statements in accordance with the laws 
                                of its domiciliary State under 
                                applicable statutory accounting 
                                principles;
                                    ``(III) maintains (and has 
                                maintained) reserves which satisfies 
                                all the statutory requirements of all 
                                States where the insurer does business; 
                                and
                                    ``(IV) is not operating under an 
                                order of supervision, rehabilitation, 
                                or liquidation;
                            ``(iii) the insurer undergoes, at least 
                        every 5 years, a financial examination (within 
                        the meaning of the law of its domiciliary 
                        State) by the insurance commissioner of the 
                        domiciliary State (or representative, designee, 
                        or other party approved by such commissioner); 
                        and
                            ``(iv) the insurer will notify the 
                        fiduciary of any change in circumstances 
                        occurring after the provision of the 
                        representations in clauses (i), (ii), and (iii) 
                        which would preclude the insurer from making 
                        such representations at the time of issuance of 
                        the guaranteed retirement income contract; and
                    ``(B) after receiving such representations and as 
                of the time of selection, the fiduciary has not 
                received any notice described in subparagraph (A)(iv) 
                and is in possession of no other information which 
                would cause the fiduciary to question the 
                representations provided.
            ``(3) No requirement to select lowest cost.--Nothing in 
        this subsection shall be construed to require a fiduciary to 
        select the lowest cost contract. A fiduciary may consider the 
        value of a contract, including features and benefits of the 
        contract and attributes of the insurer (including, without 
        limitation, the insurer's financial strength) in conjunction 
        with the cost of the contract.
            ``(4) Time of selection.--
                    ``(A) In general.--For purposes of this subsection, 
                the time of selection is--
                            ``(i) the time that the insurer and the 
                        contract are selected for distribution of 
                        benefits to a specific participant or 
                        beneficiary; or
                            ``(ii) if the fiduciary periodically 
                        reviews the continuing appropriateness of the 
                        conclusion described in paragraph (1)(C) with 
                        respect to a selected insurer, taking into 
                        account the considerations described in such 
                        paragraph, the time that the insurer and the 
                        contract are selected to provide benefits at 
                        future dates to participants or beneficiaries 
                        under the plan.
                Nothing in the preceding sentence shall be construed to 
                require the fiduciary to review the appropriateness of 
                a selection after the purchase of a contract for a 
                participant or beneficiary.
                    ``(B) Periodic review.--A fiduciary will be deemed 
                to have conducted the periodic review described in 
                subparagraph (A)(ii) if the fiduciary obtains the 
                written representations described in clauses (i), (ii), 
                and (iii) of paragraph (2)(A) from the insurer on an 
                annual basis, unless the fiduciary receives any notice 
                described in paragraph (2)(A)(iv) or otherwise becomes 
                aware of facts that would cause the fiduciary to 
                question such representations.
            ``(5) Limited liability.--A fiduciary which satisfies the 
        requirements of this subsection shall not be liable following 
        the distribution of any benefit, or the investment by or on 
        behalf of a participant or beneficiary pursuant to the selected 
        guaranteed retirement income contract, for any losses that may 
        result to the participant or beneficiary due to an insurer's 
        inability to satisfy its financial obligations under the terms 
        of such contract.
            ``(6) Definitions.--For purposes of this subsection--
                    ``(A) Insurer.--The term `insurer' means an 
                insurance company, insurance service, or insurance 
                organization, including affiliates of such companies.
                    ``(B) Guaranteed retirement income contract.--The 
                term `guaranteed retirement income contract' means an 
                annuity contract for a fixed term or a contract (or 
                provision or feature thereof) which provides guaranteed 
                benefits annually (or more frequently) for at least the 
                remainder of the life of the participant or the joint 
                lives of the participant and the participant's 
                designated beneficiary as part of an individual account 
                plan.''.

Summary: Increasing Access to a Secure Retirement Act of 2017 This bill amends the Employee Retirement Income Security Act of 1974 (ERISA) to specify optional measures that a fiduciary for a pension plan may take in selecting an insurer and a guaranteed retirement income contract to assure that the fiduciary meets the prudent man standard of care required under ERISA. A quot, guaranteed retirement income contractquot. Is an annuity contract for a fixed term or a contract which provides guaranteed benefits annually for at least the remainder of the life of the participant or joint lives of the participant and the participant's designated beneficiary as part of a defined contribution plan.