Senate Bill 2832 Could Transform Retirement Income Market

While an initial step, Senate bill 2832 could set the course for significant changes in the retirement income industry.

The bill would amend the Employee Retirement Income Security Act (ERISA) which governs defined contribution plans such as the 401k.

Plan sponsors would be required to provide plan participants with an annual statement that shows what the value of their retirement account would be in terms of guaranteed monthly payments--in other words, annuity payments.

The bill is intended to provide 401k holders with greater awareness of the value of their retirement assets as a stream of payments versus a lump sum distribution.

Source: Registered Rep

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