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Institutional Retirement Income Council Comment Letter to DOL on Lifetime Income Illustration in Pension Benefit Statements (PDF)

"[L]ifetime income illustrations and projections should be mandated as part of the participant statements.... [T]he regulation should mandate a set of assumptions in order to obtain consistency.... [W]e propose that ... the retirement age used in all cases should be the Social security retirement age for the individual.... [T]he information should be included in quarterly benefit statements provided to the participants rather than sent as a separate notice."

Testimony of Institutional Retirement Income Council to ERISA Advisory Council on Lifetime Income Solutions as a QDIA (PDF)

12 pages. "[O]ur DC system already has a plethora of lifetime income solutions -- but adoption and take [up] rates lag.... RESA will provide the legislative catalyst needed to increase adoption and market acceptance. Service providers will then have a marketplace and incentives to continue investing in development and refinement of institutional income products."

Comments of Institutional Retirement Income Council to DOL on Lifetime Income Illustrations in DC Plan Benefit Statements (PDF)

"[L]ifetime income illustrations and projections should be mandated as part of the participant statements.... [W]e recognize that the projection of a future stream of income based on a defined contribution account balance is inherently uncertain. In our view, it would be a disservice to participants if this uncertainty were not explained.... [T]he regulation should mandate a set of assumptions in order to obtain consistency.... We submit that the information should be included in quarterly benefit statements provided to the participants rather than sent as a separate notice."

Statement of Institutional Retirement Income Council to ERISA Advisory Council on Model Notices and Plan Sponsor Education on Lifetime Plan Participation (PDF)

13 pages. "To the extent employees are able to leave their money in their former employer's plan, where they retain the benefit of fiduciary oversight and more favorable pricing, the benefit is apparent. Unfortunately, many employers are reluctant to permit lifetime plan participation for a range of reasons: fear of what seems new, different or unusual; concerns about 'extra' fiduciary liability or responsibility; concerns about added cost; or concerns about added complexity. We believe these fears are unwarranted and that, with adequate education and modest changes in service provider systems, they can be allayed and perhaps even entirely eliminated."

IRIC Provides Product Fact Sheets for Several of the Retirement Income Solutions Offered in the Marketplace

These reference documents will allow plan sponsors, advisors, and consultants to engage in an objective analysis based on a consistent approach to comparing retirement income products.

Institutionally Priced Retirement Income Solutions Deliver More Income (PDF)

"Plan sponsors can use their bargaining power, scale, ability to standardize, and distribution efficiency to improve the retirement security of plan participants by offering their retiring plan participants a limited selection of retirement income generators (RIGs) that take advantage of institutional pricing rather than retail pricing.... This article examines three RIGs that can be offered in employer-sponsored DC plans: systematic withdrawals, immediate annuities, and guaranteed lifetime withdrawal benefits (GLWB, which are also known as guaranteed minimum withdrawal benefits, or GMWB).... [The authors] compare how each RIG performs assuming institutional pricing typically available within a DC plan relative to retail pricing typically available outside a DC plan."

IRIC Comment Letter to EBSA on Pension Benefit Statements -- Lifetime Income Illustrations (PDF)

"[IRIC] specifically supports the uniformity of the disclosure ... [P]articipants will receive a consistent message on lifetime income regardless of their employer or their recordkeeper.... IRIC requests additional clarity on the latitude the Department is providing with respect to adherence to the specific language outlined in the IFR.... [IRIC suggests] that the Department make it clear that projecting balances to age 67 using reasonable assumptions is education as defined by I.B. 96-1 and would not be considered fiduciary advice under Section 3(21) of ERISA."

Lifetime Retirement Income in DC Plans: What's In It for Plan Sponsors? (PDF)

"In recognition of the government's significant investment in defined contribution plans (through tax benefits for employers and employees), these plans must deliver on their promise to successfully convert accumulated savings to retirement income.... Adoption of a retirement income solution is a fiduciary decision. But so is the decision NOT to adopt. Plan sponsors who want to maintain a cost-effective retirement program, manage their workforce, provide a competitive benefit, and reduce the risk of government mandates will want to give serious consideration to providing their employees with a retirement income solution."

Quantifying Key Risks in Retirement from the Perspective of Retirement Income Adequacy (PDF)

"[The authors] hope that plan sponsors choose to focus on participant retirement income adequacy, as opposed to simply investment returns, savings rates and participation rates. Those metrics are part of what makes a successful DC plan, but DC plans are now a primary source of retirement income for millions of American workers and so the objective needs to expand. A sponsor who understands this can act accordingly, in the best interest of their plan participants -- which is what being a fiduciary is all about.... Quantifying [six] key risks for sponsors is the first step to helping plan participants deal with them. For each key risk, [this paper gives] a brief description and [identifies] some actionable steps a plan sponsor can take to help their participants mitigate them."

Cumulative Benefits of Retirement Income Solutions in Our DC System (PDF)

13 pages. "This article seeks to summarize the primary benefits of in-plan income solutions and will break down the benefits by participants, sponsors, and the societal benefit of enhanced retirement security achieved through the adoption of guaranteed income options within our DC system."