The Department of Labor today issued an interim final rule implementing section 203 of the bipartisan Secure Act of 2019 requiring that defined contribution plans (such as 401(k) plans) include two lifetime income illustrations on a plan participant’s pension benefit statement at least once every 12 months. The rule is intended to help workers better gauge their ability to save for a secure retirement.
Under the rule, plan administrators will be required to express a plan participant’s current account balance both as a single life annuity and as a survivor annuity income stream. The rule will take effect one year after publication in the Federal Register, and the DOL will accept comments on the rule for 60 days.
The American Bankers Association has long supported DOL efforts to encourage plans to provide financial information to retirement savers that will assist them in planning for a secure retirement. The association is reviewing the rule and will file comments in consultation with its ERISA attorneys group.