Sen. Johnny Isakson, R-Ga. (Photo: Isakson)

Sen. Johnny Isakson has brought back a bill that, in theory, could change one of the documents that well-organized individual clients bring in to their financial advisors.

The bill, S. 868, the Lifetime Income Disclosure Act, would apply to any employer-sponsored retirement plan with employee-directed investment accounts that was governed by the Employee Retirement Income Security Act.

— (Related on ThinkAdvisor: House, Senate Introduce Lifetime Income Disclosure Act)

The bill would require a 401(k) or other affected plan to include a lifetime income forecast in the plan benefits statement at least once per year.

The forecast would have to show the enrollee how much income the plan might generate if the enrollee annuitized the account assets, or used the assets to create a lifetime stream of monthly benefit payments.

The LIDA bill includes a provision stating that the forecast requirement would create no new liability for the plan sponsor, any of the plan fiduciaries, or any other persons.

Sen. Jeff Bingaman, D-N.M., introduced similar bills in 2009, during the 111th Congress, and in 2011, during the 112th Congress.

Isakson, a Georgia Republican, introduced similar bills in 2013, during the 113th Congress, and in 2015, during the 114th Congress.

The bills always died in the Senate Health, Education, Labor and Pensions Committee, but they always had a bipartisan list of co-sponsors. In 2013, Isakson managed to get Sen. Elizabeth Warren, D-Mass., on board as a co-sponsor.

Sen. Christopher Murphy, D-Conn., is co-sponsoring S. 868.

Reps. Luke Messer, R-Ind., and Mark Pocan, D-Wis., have introduced a similar bill in the House.

The American Council of Life Insurers is one of the groups supporting the bill.

Dirk Kempthorne, the president of the ACLI, put out a statement welcoming reintroduction of the bill.

“American workers need additional education about their retirement savings and how those savings translate into monthly income,” Kempthorne said in the statement.

— Read Lifetime Income Projections Useful, but Workers Not Surprised by Outcome: EBRI on ThinkAdvisor.