The Institutional Retirement Income Council, a non-profit think tank, has come out in support of the Department of Labor’s proposed rule on lifetime income illustrations.
In a letter to the DOL, William Charyk, president of the IRIC, said he believes that lifetime income illustrations and projections should be mandated as part of participants’ benefit statements.
“Given the risks defined contribution plan participants face, including a lack of understanding of how much they need for retirement, how long their funds will need to last and how to spend the funds when they do retire, it is imperative that participants receive this information. To make the disclosures voluntary would be seriously detrimental to them,” he said.
Several organizations have come out this week in opposition to the Department of Labor’s proposed rules, including the SPARK Institute and Putnam Investments. Both believe the lifetime income illustrations should be voluntary and plan sponsors should be able to use their own set of assumptions when furnishing these illustrations to participants. Many organizations say they have already put tools in place to help their plan participants discover their lifetime income options in retirement.