2020 – 01/13 – New rules will soon require employers to annually disclose retirement income to employees

The recently enacted SECURE Act includes a new requirement for employers that sponsor tax-favored defined contribution retirement plans that are subject to ERISA. Specifically, the law will require that benefit statements sent to plan participants include a lifetime income disclosure at least once during any 12-month period. It will need to illustrate the monthly payments that an employee would receive if the total account balance were used to provide lifetime income streams, including a single life annuity and a qualified joint and survivor annuity for the participant and his or her surviving spouse. The requirement won’t go into effect until 12 months after the DOL issues a final rule.

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