An analysis found defaulting a portion of balances in deferred income annuities (DIAs) would boost income for retirees later in life, and researchers offered suggestions for implementation by defined contribution (DC) plan sponsors.
Tag: annuities in defined contribution plans
The firm is anticipating passage of the SECURE Act, which offers an annuity selection safe harbor for defined contribution (DC) plan sponsors.
The offer is being made to participants in a small number of plans in which the plan sponsor has decided to no longer allow contributions to the EQUI-VEST variable annuity and to make the AXA Retirement 360 Defined Contribution Program available as an option.
The top reason cited for not offering an annuity-type product in defined contribution plans is being uncomfortable or unclear about the fiduciary implications.
Comments to the ERISA Advisory Council mention lack of utilization among plan participants and other ways DC plan participants can create sustainable retirement income.