Members of Congress and officials from the Departments of Treasury and Labor are working on options that would provide sources of guaranteed lifetime income to participants in 401k and other pension plans.
At a high level, it is clear that the Obama Administration wants to create structures and incentives for:
- Increasing retirement savings.
- Providing people with the ability to turn those accumulated savings into streams of income that last through retirement.
A trial program that would involve compulsory annuitization was introduced through the Retirement Security Project in 2008.
The notion of in-plan annuities has also been on the radar of the Administration and the Labor and Treasury departments have published a joint request for information in this regard.
According to Investment News, regulation in 2010 is likely to preceed any legislation.
As a result, 2011 seems to be the earliest that any meaningful lifetime income or annuity-based legislation (as it pertains to defined contribution pension plans) would be passed.
Source: Investment News
- Log in to post comments
