IRI Supports DOL’s Lifetime Income Illustrations Proposal
By Cathy Weatherford
Insured Retirement Institute (IRI)
Washinton, D.C. – August 7, 2013 – The Insured Retirement Institute (IRI) today issued the following statement from IRI President and CEO Cathy Weatherford after IRI delivered comments to the Department of Labor’s Employee Benefits Security Administration (EBSA) regarding its Advanced Notice of Proposed Rulemaking, which would require benefit statements to provide lifetime income illustrations. The rule would apply to defined contribution plans, such as 401(k) and 403(b) plans.
“We are highly supportive of educational initiatives to enhance Americans’ understanding of their retirement savings and to help them effectively plan for retirement. Given the prevailing need to improve education about lifetime income needs, we strongly support the concept of providing lifetime income illustrations on participant benefit statements. These illustrations would provide participants with a better understanding about how much income can be generated from savings and go a long way toward helping participants put their savings in proper perspective. As such, providing lifetime income illustrations may spur participants to begin saving more and help them to plan more effectively for retirement. We thank Assistant Secretary Phyllis Borzi for her leadership on this important issue. We look forward to working with her and the EBSA staff to work out any details as they pursue a final rule, and we encourage them to continue to explore additional regulatory measures to increase access to, as well as the use of, guaranteed lifetime income strategies.”
IRI’s comment letter is available here.