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Back when I worked with MPPs or PSPs with an annuity option I had been in the industry for a good 15 years. I think I saw 1 person take an annuity that whole time. I will admit the universe of plans offering annuities was pretty small so the results couldn't have been large. But I have seen no actual interest for this option over the years. It would be interesting to hear from the DB folks: how many people who have a lump sum option or an annuity option take the lump sum vs annuity. I always got the impression from the DB I know that if a lump sum was offered it was taken way more often than the annuity. As in something like a 90% vs 10% type ratio. I could be wrong as I wasn't taking a formal survey. So such a law will increase the number of plans offering it but I doubt it starts a trend. On the other hand the annuity disclosures for MPPs and PSP with annuity options were a huge pain to prepare and send it. So my guess is it will increase costs without much benefit. But I might be a cynic.

Impossible. The rationale is the mutual fund expense is intrinsic to the investment itself. IT's a cost of operting the "company" that you are investing in. Even though it is not the same, it is tantamount to reimbursing a participant who invests in IBM for the rent IBM paid on its real estate. I know it's a crazy analogy but it is spot on. You are investing a "business" that is in the business of investing money and one of the expenses of that business is to pay a fund manager. Anything you do in this regard would be an employer contribution, and with it goes everything that applies to employer contributions (document provisions, testing, 415 limits, etc). In other words, forgettaboutit!

Its just a small part of a much bigger legislative text, but yea I would like to have this one taken out as well. There are other parts that are much more "exciting"

And I bet there is a great lobbying effort by the annuity industry going on...

99.99% would be my estimate. Thousands of participants ago, I know of one terminated employee who took a Joint and 50% Survivor Annuity form of payment of about $45 per month instead of a lump sum (over $5,000) because they could not obtain spousal consent.

If they bought the stock they bought the history. HCEs of ABC in 2021 will be HCEs of XYZ after the purchase. 5+% owners of ABC in 2021 will be HCE's of XYZ in 2022. Employees that have compensation over the HCE comp limit (unless not in TGP and that election is made) combined from ABC & XYZ in 2021 will be HCEs in 2022.