The Senate Aging Committee will hold a hearing Wednesday on whether annuities that provide guaranteed income for life should be a component of any retirement savings plan.
Those testifying at the hearing, “The Retirement Challenge–Making Savings Last a Lifetime,” will debate the pros and cons of a Department of Labor proposal issued in February dealing with such instruments.
The proposal requested information about strategies for helping workers convert savings from 401(k) plans and other defined contribution retirement plans into a guaranteed stream of lifetime income.
The proposal also asked commentators whether regulators should require employers with 401(k)s to offer a lifetime income option or automatically enroll employees who don’t make a selection.
The proposal has generated more than 700 comments that the agency is now reviewing.