Lifetime Income Options for Retirement Plans
U.S. Department of Labor
The Department of Labor’s Employee Benefits Security Administration, in conjunction with the Department of the Treasury, has published a Request for Information asking for ideas on how to help reduce the chances that workers will run out of funds during their retirement years.
What is a Request for Information?
A Request for Information (RFI) is not a rule or regulation. It is a pre-rulemaking act by an agency, or in this case two agencies, to collect information and data on a specific topic. This RFI is the starting point for a discussion of whether, or to what extent, the agencies might take some action to address identified problems facing today’s retirees.
What is the Focus of the RFI?
An ever increasing number of workers are looking to their defined contribution plans for their retirement security, but at the same time many workers are receiving their retirement benefits in lump sum distributions. This could increase their risk of not having an adequate income during retirement. Recent reports by the Government Accountability Office and the Department of Labor’s ERISA Advisory Council, a 15-member council representing employees, employers, the general public, and industry, have documented this risk.
The RFI is merely a vehicle to engage interested persons in exploring ways that the Agencies and the private sector can work together to ensure that workers have the tools they need to help ensure their retirement savings last a lifetime.
How Does the RFI Address this Problem?
The RFI asks a number of questions on a broad range of topics designed to build a public record that will help both of the Agencies assess the magnitude of the problem and then determine what, if any, actions might be appropriate to address the problem. The Agencies do not have any pre-determined outcomes or goals, other than to engage interested persons in an open, broad, and objective dialogue of issues and solutions.
Overview of the Request for Information
This fact sheet has been developed by the U.S. Department of Labor, Employee Benefits Security Administration, Washington, DC 20210. It will be made available in alternate formats upon request: Voice phone: 202.693.8664; TTY: 202.501.3911. In addition, the information in this fact sheet constitutes a small entity compliance guide for purposes of the Small Business Regulatory Enforcement Fairness Act of 1996.