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Lincoln Financial Group Comment Letter to DOL on Lifetime Income Illustration in Pension Benefit Statements (PDF)

"Lincoln believes that illustrations based on reasonable non-safe harbor assumptions should be permitted.... Lincoln agrees that guidance is needed on how to comply with a retirement income illustration requirement without running afoul of [FINRA] rules.... Lincoln believes that the illustrations should be required to contain either single life annuity illustrations only, or in the alternative, both single life and joint and survivor annuity illustrations, without regard to a participant's actual marital status. We do not believe the illustration should include joint and survivor annuity illustrations only on benefit statements of married participants and beneficiaries."

More Than Three Quarters of Americans Say They Are Likely to Set Financial Goals in 2018

"As 2017 comes to an end ... 77 percent of Americans are very likely or somewhat likely to set financial goals in 2018 -- more than double the 34 percent who set specific financial goals in 2017. Additionally, 83 percent of Americans who set a specific financial goal in 2017 feel better about their finances now than they did at the beginning of the year."

Things Employers Should Consider for Open Enrollment Season

"45% of employees surveyed expect inflation will impact their benefits decisions this year ...  ... [1] Life changes -- make sure the benefits you offer are changing too ... [2] Education is essential.... [3] Benefits get employees through the door, and keep them there.... [4] Focus on financial wellness."

Measuring the Optimism, Outlook and Direction of America on Employee Benefits (PDF)

"88% of respondents feel optimistic about the future; 75% feel 'in control' of their lives today. Yet, regarding their financial futures, less than one in five feel very secure, and only 18% are confident they could cover their current expenses in the event of a major injury or illness.... Nearly 95% of employees agree they are more likely to enroll in benefits they feel familiar with and educated about.... About half (49%) of surveyed employees identified cancer as their top health concern. Yet, enrollment in benefits like critical illness and accident insurance remains low."

DOL Appoints New Members to ERISA Advisory Council

"The appointees and their areas of expertise are as follows: [1] Accounting: Gwen Mazzola is a partner and the ERISA Practice Leader of HoganTaylor LLP.... [2] Employee Organizations: Mayoung Nham is a principal with the law firm of Slevin & Hart PC.... [3] Employers: John M. Towarnicky has ... [held] leadership positions at four Fortune 500 employers and at the Plan Sponsor Council of America.... [4] General Public: Mark D. DeBofsky is the principal member of DeBofsky Law Ltd.... [5] Insurance: Alice Palmer is vice president and chief counsel for Retirement Plan Service for the Lincoln Financial Group."

Consumers Who Envision Their Retirement Save More

"Retirement plan participants who have envisioned their ideal retirement set their sights higher when saving for retirement. The median amount they think they need to save for retirement is 20% of their income (this is 7% higher than those who have not given any thought to their ideal retirement). As a result, those who have a picture of what retirement holds for them are more than twice as likely to contribute 15% or more in their workplace retirement plan compared to those who have not given it any thought."

IRS Alleviates Suffering of RIAs Who Use Fee-Based Annuities

"Previously, money withdrawn from an account to pay the advisory fee was treated as income to the client, making it taxable, even though the client never actually pocketed the money. But the IRS finally put an end to the unpleasantness in [an] Aug. 7 ... private letter to Lincoln Financial Group and Nationwide Insurance. It stated an advisor could vacuum out as much as 1.5% of the annuity's value as a fee without requiring clients to report it as income."

Auto-Enrollment and QDIAs Succeed, But Participant Communications Don't Keep Up

"Eighty-five percent of plan sponsors reported that automatic features are especially effective in helping participants who consider themselves less educated on retirement matters. [But] the more fully organizations have embraced automatic features, the more strongly those organizations believe participant communication has not evolved apace. Plan sponsors who have implemented a bundle of automatic plan features -- automatic enrollment, qualified investment default alternatives (QDIAs) and automatic escalation -- are 56 percent more likely to feel that communication strategies have not kept pace with the evolution in plan design."

Retirement Plan Communication in an Auto Features World (PDF)

"Findings indicate that the evolution of communications has not kept pace with the evolution of plan design. In fact, the more automatic features organizations have implemented, the more strongly they believe participant communication has not evolved accordingly. Compared to plan sponsors who have implemented only one automatic plan feature, those who have implemented the complete bundle of all three auto features are 56% more likely to feel that communication strategies have not kept pace with the evolution in plan design. That said, plan sponsors are divided as to whether, or how much, communication should be retooled for plans with auto features in place."

Text of Written Statements to ERISA Advisory Council on Examining Income Replacement During Retirement Years in a Defined Contribution Plan System

Links to text of written statements by invited witnesses: Olivia Mitchell (Pension Research Council of the Wharton School), Bruce Ashton (Drinker Biddle & Reath LLP), Michael Hadley (Davis & Harmon LLP), Kelli Hueler (Hueler Companies), Abigail Pancoast (Lincoln Financial Group (for ACLI), Allison Klausner (Honeywell, for the American Benefits Council) and Kevin Hanney (United Technologies).