On July 26, 2021, the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) issued Temporary Implementing Frequently Asked Questions (FAQs) on the Interim Final Rule (IFR) which the EBSA had published on September 18, 2020 implementing the SECURE Act’s requirement that ERISA- subject defined contribution retirement plans - such as 401(k) and 403(b) plans - must provide new “lifetime income illustrations” on participants’ benefit statements. The IFR requires those benefit statements to express a participant’s current account balance in two different income stream illustrations - both as a single life annuity (for the participant only) and as a qualified joint and survivor annuity (for the participant and his or her surviving spouse). These two income stream illustrations are intended to help participants better understand how the amount of money they have saved so far under the plan converts into an estimated monthly payment for the rest of their lives and how this affects their retirement planning.
Please see full publication below for more information.
