Reston, VA, November 26, 2001 - The National Association for Variable Annuities (NAVA) is pleased to announce the introduction of the Lifetime Annuity Payout ("LAP") proposal in the House of Representatives on Friday, November 16, 2001 by Ways and Means Committee members Phil English (R-PA), Karen Thurman (D-FL), and Nancy Johnson (R-CT).

As part of a coalition composed of NAVA, the American Council of Life Insurers (ACLI) and the Committee of Annuity Insurers, we are promoting the passage of the bill as a way to encourage the use of life contingent payout options in retirement. The proposal calls for annuity payouts to be taxed at capital gains rates instead of ordinary income rates if the owner of an individual annuity elects lifetime payments from his or her contract.  This provides an incentive for people to choose a retirement savings vehicle that ensures their savings will last as long as they live. "Quote from Mark."

NAVA is a non-profit trade association located in suburban Washington D.C.  NAVA provides a variety of services to the industry including educational forums, research, and conferences aimed at furthering the development of fixed and variable annuities, income annuities and variable life insurance.  NAVA also maintains and supports an educational website for consumers at www.RetireOnYourTerms.com.