Advocacy Update! NAIFA Congressional Conference Report from Cameron Webb

IMPORTANT NEWS UPDATE FROM THE NATIONAL ASSOCIATION OF INSURANCE AND FINANCIAL ADVISORS - WEST VIRGINIA

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Congressional Conference 2024 Report

Submitted by Cameron Webb

In the spring of 2023, NAIFA-WV was in the offices of our state leaders discussing their potential support for Secure Act 2.0. Being new the entire process I sat in the back with a smile on my face as the Legends of NAIFA-West Virginia worked their magic. I made very few comments and listened as the importance of all the new additions and how they will benefit the people of West Virginia. Then close to the end of our time they turned to me and asked if there was anything I would like to add. While researching our representative’s stance on this issue on Secure Act 2.0 in a few documents NAIFA had handed to us. What I found in the back was a short document on the renewed interest from the DOL on a long thought defeated ruling on Fiduciary only. The group spoke briefly about what concerns our profession may face if it takes the same path as before. With very little information, other than murmurs and rumors, there was no known direction on how our representatives could be of help at that time.

In the winter we returned to talking up the importance of the Secure Act 2.0 once again. Making sure our senators understood the importance of for the retirement savers of West Virginia. Once again in the back of our NAIFA handouts was one about the DOL looking to revive the Fiduciary only ruling. At this point it seemed like maybe it could come to light more than a definite, but NAIFA wanted to make sure it was on our representatives’ minds.

We returned in the spring of 2023 and the number one topic of discussion is the DOL ruling. It seems it has gained traction and has no impedance in its path to slow it down. The DOL has set its mind that we need to be reined in and only their regulatory insight can keep us from over profiting off the backs of hard-working Americans. Commissions and fees are unchecked as we gouge our clients, and no one is looking out for the interest of Mom and Pop’s retirement. They know they must be the ones to bring balance to the rampant corruption.

NAIFA shows up in droves on Capitol Hill that spring delivering our message. There is enough regulation in our industry, the DOL is not needed to oversee us too. The representatives respond with “What can we do to help”. Letters started pouring into the DOL from across the nation, and across the aisle, in the disapproval of this proposed ruling. NAIFA representatives from across the country start attending hearings on the proposed ruling emphasizing their concerns against it. Letters from the DOL begin to arrive to all those who have voiced their disapproval with the same response: We understand your point of view for your industry, but we feel it is in the best interest of the American people we move forward with our proposed ruling.

In the early spring we start to plan our ascent on to Capitol Hill to continue the fight, but on April 23rd, 2024, one month before we are to arrive, the DOL releases its rule on Fiduciary investment advice that will go into effect September 23rd, 2024. NAIFA nation was ready for this news, and new strategies were to be enacted. After a virtual planning session on our new topics of discussion on May 15th, five days before NAIFA members arrive in Washington, at a bicameral group of senators introduced a resolution of disapproval under the Congressional Review Act to overturn this ruling. With our very own Senator Joe Manchin being one of four senators spearheading this campaign. He is accompanied by Senators Budd (R-NC), Cassidy (R-LA), and Marshall (R-KS).

Cameron Webb and Senator Joe Manchin.

NAIFA arrives on Capitol Hill May 21st, 2024, armed with new ideas to share with our representative. I have been scheduled with three appointments to speak at Senator Joe Manchin, Senator Shelley Moore Capito, and Congresswoman Carol Miller's offices. The first stop of the day is at Senator Manchin’s office where I meet with Chistopher Sharer and Perrin Brown. Top of the list is NAIFA’s gratitude for their work on fighting the DOL ruling. This group has always understood how this ruling will limit access for the middle and lower class to advice on their investments. While we are chatting about the other topics, they inform the senator wants to speak with me before I head to my next appointment. They ushered me through the maze of offices and cubicles to the senator’s office. Where I get the honor of thanking him personally for introducing the resolution of disapproval under the CRA and thank for him for all he has done to support NAIFA.

I have rehearsed my speeches and made my notes on the topics, and they are very similar in every office. One such topic is that NAIFA has helped bring into law, in WV, the requirement of high school students to complete a course personal finance before graduation. This is a great start, but the need is further reaching in our state. With each visit I talk about what I face in my own office. Being attached to a bank I get to work a gambit of clients, from the well off to the not so well off. I have bank clients that come in with a five figure IRA and they want to retire at sixty-two, that’s what their father and grandfather did, and they are going to do the same. While in my office I must educate them on the cost of retirement. The loss of income for taking early retirement at 62. The need for private pay insurance until they are sixty-five, if they are not provided with some type from their place of employment when they retire. The realization that a large majority of West Virginia’s do not understand these issues keeps leading to elderly living on strict fixed income. The idea of living fifteen plus years on the same income while facing inflation and expanding taxes is not common knowledge and we need to find a way to make a difference.

Cameron Webb and Congresswoman Carol Miller.

The second stop of the day is to Congresswoman Miller’s office. I am joined by Diane Boyle, VP of NAIFA, and we meet Quynn Kennedy, one the congresswoman’s aids. We are shown to an office where Congresswoman Miller is waiting to greet us. I had no idea I was meeting with her personally, so I am just a little out of my own thoughts, but just as before I refer to my notes. There is a list of topics to discuss, almost the same as Senator Manchin’s office. First and foremost, I thank the congresswoman for all her hard work opposing the DOL ruling. It has been a long fight and is not over yet. NAIFA asks for support on the opposition of the ruling when it comes to congress. I go into my rehearsed speech of financial literacy and the need that goes beyond that of our high-schoolers. I ask if she would be interested in joining the Financial Literacy and Wealth Creation Caucus that is being co-chaired by Congresswoman Kim (R-CA) and Congresswoman Beatty (D-OH). As I go through a few more well-crafted lines of some NAIFA’s other concerns, I am reminded by Diane don’t forget she is on the committee of Ways and Means. I had completely forgotten about the upcoming tax reform and our area of concerns.

As the individual tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA) approach their expiration at the end of 2025, NAIFA wants to ensure that our concerns are heard by the representatives. The impending tax reform is more than a policy debate; it’s about ensuring that the American dream of financial security. NAIFA is advocating for the retention of tax incentives that encourage prudent financial planning, such as the tax-free growth of whole-life insurance, the benefits associated with tax deferred annuities, the outlook on 529 savings plans for college, and a merit of other products that could be impacted on the sunsetting of TCJA at the end of 2025. This will be an ongoing discussion with our representatives, whomever they should be, after the November election.

Cameron Webb and Senator Shelley Moore Capito.

I move on to my last meeting of the day, Senator Capito’s office. I introduce myself to the aide sitting at the front and that I am with NAIFA. They check their computer and send out a message to inform another aid that the 4:30 appointment has arrived, and after a brief pause the staffer looks and asks, “Is John Pauley with you today”. Without John I usually just meet with Tara, who is the Tax and Trade advisor to the senator. This time someone different walks into the waiting area and escorts me across the hall. I was not expecting to see Senator Capito in person, but it was a welcome surprise. We are joined by Tara McGee and Luke Lilly, and I thank them for all they have done and will do for our industry. We then move into the conversations of NAIFA’s and our concerns. The importance of the upcoming tax reform, the lack financial literacy, and the need to bring awareness to the need for life insurance through our nonprofit Life Happens. Were we are taking a non-bias approach to informing consumers of the importance of life insurance. We just don’t want to sell them a product but empower them with knowledge they need to make the best decision for their loved ones.

With three quick knocks on the door my time is up. I gather my things, thank the senator and her staff for their time, and find my way out into the sun to start the journey home.

NAIFA - WEST VIRGINIA

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For more information, please contact NAIFA-West Virginia Executive Director John Pauley, CLU, ChFC, CLTC, LACP at (304) 345-4343 or email johnpauley@ft.newyorklife.com.