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.
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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.