____________________ 

Circular 230 disclosure: This document was not intended or written to be used, and cannot be used, to: 

(1) avoid tax penalties, or (2) promote, market or recommend any tax plan or arrangement. 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001-2133 

www.acli.com 

Walter Welsh 

Executive Vice President, Taxes & Retirement Security 

(202) 624-2157 t (866) 953-4149 f 

walterwelsh@acli.com 

James Szostek 

Vice President, Taxes & Retirement Security 

(202) 624-2378 t (866) 953-4149 f 

jimszostek@acli.com 

Shannon Salinas 

Counsel 

(202) 624-2028 t (866) 953-4149 f 

ShannonSalinas@acli.com 

Mailed Electronically

February 9, 2011 

Office of Regulations and Interpretations 

Employee Benefits Security Administration 

Attn: Fiduciary Definition Hearing, Room N-5655 

U.S. Department of Labor 

200 Constitution Avenue, NW 

Washington, DC 20210 

Subject: Fiduciary Definition Hearing 

Dear Sir or Madam: 

The American Council of Life Insurers* (“ACLI”) respectfully requests an opportunity to testify at the 

fiduciary definition hearing. ACLI member companies offer insurance contracts and other investment 

products and services to qualified retirement plans, including defined benefit pension and 401(k) 

arrangements, and to individuals through individual retirement arrangements (IRAs) or on a nonqualified basis. ACLI member companies also are employer sponsors of retirement plans for their own 

employees. 

Parties engaged in transactions with ERISA plans and IRAs need clear, unambiguous rules by which to 

determine their duties and obligations in order for the marketplace to function efficiently and to ensure 

that plans, plan participants and IRA owners continue to have a broad range of investment products and 

services available to them, including investment advice and educational services. Our testimony will 

focus on the following: 

(1) A seller’s limitation on the application of fiduciary status that recognizes that financial institutions 

such as life insurers and their sales representatives should not be categorized as fiduciaries under 

ERISA or Code section 4975(e)(3)(B) when they are engaged in selling activities (approximately 5 

minutes); 

 

* The ACLI represents more than 300 legal reserve life insurer and fraternal benefit society member companies operating in the United 

States. These member companies represent over 90% of the assets and premiums of the U.S. life insurance and annuity industry. 
(2) The determination of fiduciary status should only be based on written representations. Use of 

written representations will eliminate ambiguity in the understanding of the recipient and provider 

(approximately 1 minute); and 

(3) Separate rule making for individual retirement accounts and Keogh plans that considers the IRA and 

Keogh marketplace, its regulatory environment, the economic impact of a change to the current 

rules to this marketplace, a meaningful investment education safe harbor tailored to this 

marketplace, and that clarifies the application of existing exemptions and/or issued new exemptions 

tailored to this marketplace (approximately 4 minutes). 

ACLI would appreciate an opportunity to testify. We believe our testimony would be of value to you. We 

thank you for your consideration of this request. 

Sincerely yours, 

Walter C. Welsh James H. Szostek 

Executive Vice President, Vice President, 

Taxes & Retirement Security Taxes & Retirement Security 

 

Shannon Salinas 

Counsel, 

Taxes & Retirement Security 

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