The U.S. Department of Labor and the Department of the Treasury are seeking input to determine what steps to take to enhance retirement security for workers in employer-sponsored retirement plans and with individual retirement arrangements (IRAs) through lifetime annuities or other arrangements that provide a stream of income after retiring.
Therefore, the agencies are soliciting views, suggestions and comments from plan participants, employers and other plan sponsors, plan service providers, and members of the financial community, as well as the general public, on this important issue. Comments must be submitted on or before May 3, 2010.
Comments are being sought on a broad range of topics, including:
- The advantages and disadvantages of distributing benefits as a lifetime stream of income both for workers and employers, and why lump sum distributions are chosen more often than a lifetime income option.
- The type of information participants need to make informed decisions in selecting the form of retirement income.
- Disclosure of participants’ retirement income in the form of account balances as well as in the form of lifetime streams of payment.
- Developments in the marketplace that relate to annuities and other lifetime income options.
On February 26, 2010 the DOL released a fact sheet providing a background and overview of the request for information process (RFI).