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April 07, 2017 at 10:48 AM
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.
