Annuities: Detailed Info on the Government’s RFI
The Labor and Treasury Departments issued a Request for Information and the details are listed in “Labor, Treasury Departments Seek Ideas on Options for Lifetime Retirement Annuities.” The article, from the Institute of Management and Administration’s Report on Managing Benefits Plans, talks about the 39 questions asked by the Departments in their RFI. Their goal is to make defined contribution pension plans and individual retirement accounts become sources of lifetime income through the use of annuities. “Empirical data” is the number one request from the Departments of Labor and Treasury in their RFI.
Sixteen questions are listed under the category of general, with the first asking for the advantages and disadvantages of using annuities with retirement plans. They also want to know why more people do not already use the lifetime income solutions from annuities, about using 401k annuities matched by employers, any potential problems employers foresee in offering annuities, among other questions. All of the information is due to the Departments by May 3, then they will determine what course of action the government will take to help ensure Americans’ retirement. Since we are living longer but not necessarily managing retirement funds well, the government will look to regulations or legislation to help retirees manage lifetime income through annuities.
