Legislation introduced in the Senate this week would mandate that 401(k)s and other defined contribution plans show beneficiaries the value of their retirement account.
The legislation would require plan sponsors to provide data on how much income a participant’s account balance would generate each month at retirement.
The legislation, the Lifetime Income Disclosure Act, was introduced by Senators Jeff Bingaman, D-N.M.; Johnny Isakson, R-Ga.; and Herb Kohl, D, Wis.
The senators said they introduced the bill because the shift to 401(k) plans has made employees increasingly responsible for saving for retirement and managing their retirement investments.
“Many Americans are not saving enough, and they are unsure how quickly to draw down their savings in their retirement years,” they explained.
Officials of the American Council of Life Insurers, Washington, lauded the bill and urged its quick passage.