DOL Releases Lifetime Income Disclosure Rule
The Department of Labor (DOL) today announced an interim final rule that prescribes how retirement plans are to provide lifetime income information to give savers a realistic illustration of how much monthly retirement income they could purchase with their account balance. Included in the rule is model language that may be used for these explanations, as well as liability relief for fiduciaries that use the model language and assumptions provided in the rule.
This guidance is in support of a provision of the Setting Every Community Up for Retirement Enhancement (SECURE) Act that requires a participant’s accrued benefit to be reflected on her benefit statement as an estimated lifetime stream of payments. It will be effective 12 months after the date of its publication in the Federal Register.