Benefits February 4, 2011

Senators Call for Retirement Income Disclosure

February 4, 2011 (PLANSPONSOR.com) – U.S. Senators have introduced a bill that would require an annual statement to retirement plan participants similar to the statement a worker gets from the Social Security Administration.
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A news release from the office of Senator Johnny Isakson (R-Georgia) said he, Jeff Bingaman (D-New Mexico), and Herb Kohl (D-Wisconsin) reintroduced their Lifetime Income Disclosure Act (S. 267), which would require 401(k) plan sponsors to inform participating workers of the projected monthly income they could expect at retirement based on their current account balance. By providing similar information to that of the annual social security statements, the Lifetime Income Disclosure Act would give American workers a more complete snapshot of their projected income in retirement, the announcement claimed.  

The Senators’ action coincides with a hearing in the Senate Health, Education, Labor & Pensions (HELP) Committee on simplifying retirement decisions for Americans (see HELP Panel Witnesses Back Auto Features, More Education).  

“Half of American households will lack sufficient retirement income to maintain their pre-retirement standard of living, but many are unaware of their vulnerability. Our bill will empower Americans to determine whether they are on a path to a secure retirement,” said Bingaman, in the announcement.

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