Human Resources
DOL Seeks Comments on Proposed Lifetime Income Illustrations for Defined Contribution Plans

DOL Seeks Comments on Proposed Lifetime Income Illustrations for Defined Contribution Plans


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On May 8, 2013, the Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) issued an Advance Notice of Proposed Rulemaking (ANPRM) that describes requirements the DOL is considering for defined contribution plans to provide illustrations of potential monthly lifetime income amounts (i.e., hypothetical annuity payments) based on actual participant account balances. An ANPRM is not equivalent to the issuance of proposed regulations; instead the DOL is still in the policy-making stages and is seeking input from plan sponsors and service providers on their current thinking of what upcoming proposed regulations may be. These pre-proposed regulations would apply only to defined contribution plans subject to ERISA and are, in part, a result of numerous responses received with respect to the joint DOL and Department of Treasury Request for Information (RFI) regarding lifetime income options issued February 2, 2010. The ANPRM is seeking comments by July 8, 2013 on specific language and concepts with respect to illustrative lifetime income projections in advance of the DOL issuing proposed regulations.

The Aon Hewitt bulletin below discusses the ANPRM.

Download DOL Seeks Comments on Proposed Lifetime Income Illustrations for Defined Contribution Plans