US Labor Department seeks input on regulations regarding lifetime income illustrations
WASHINGTON The U.S. Department of Labor's Employee Benefits Security Administration today announced an advance notice of proposed rulemaking focusing on lifetime income illustrations given to participants in defined contribution pension plans such as 401(k) and 403(b) plans. The notice provides an opportunity for stakeholders to provide early input into the development of regulations.
"We are looking for the best ideas on how to show people what their lump-sum retirement savings look like when they are spread out over all the years of retirement," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "Retirees run the risk of outliving their savings. If workers have the benefit of seeing how long their savings could last, it might spur better planning for the future, such as adopting more effective savings strategies."
EBSA is developing proposed regulations regarding the pension benefit statement requirements under Section 105 of the Employee Retirement Income Security Act of 1974. The notice solicits input on a rule that would require a participant's accrued benefits to be included on his or her pension benefit statement as an estimated lifetime stream of payments, in addition to an account balance. EBSA is also requesting comments on a rule that would require a participant's accrued benefits to be projected to his or her retirement date, assuming annual contributions and an estimated rate of return, and then presented as an estimated lifetime stream of payments.
The advance notice of proposed rulemaking serves as a request for comments on specific language and concepts in advance of the proposed regulations.
The notice will be published in the Federal Register May 8. It can also be viewed at http://www.dol.gov/find/20130507/.
Written comments may be addressed to the U.S. Department of Labor, Office of Regulations and Interpretations, Employee Benefits Security Administration, Room N-5655, 200 Constitution Ave. NW, Washington, DC 20210, Attn: Pension Benefits Statement Project. The public also may submit comments electronically by email to E-ORI@dol.gov with RIN 1210-AB20 in the subject line of the message or through the federal e-rulemaking portal at http://www.regulations.gov. Comments are due by July 8.