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Some folks want 'em. Some don't. That's the upshot of the 600-plus letters the U.S. Labor and Treasury Departments received in response to a request for information about including income annuities as a pay-out option for 401(k) plans. But there's clearly no consensus on what is certain to become a political hot potato.
In February, the Labor and Treasury Departments sent out a request for information (RFI) soliciting public comments to help the agencies determine what steps to take "to enhance retirement security" for workers in 401(k) and other employer-sponsored retirement plans "through lifetime annuities or other arrangements that provide a stream of income after retiring."
The government sought comments on a broad range of topics, including:
* The advantages and disadvantages of distributing retirement savings as a lifetime stream of income both for workers and employers, and why lump-sum distributions are chosen more often than lifetime income options.
* The type of information participants need to make informed decisions in selecting how to pay out their retirement savings.
* Disclosure of participants' retirement income in the form of account balances as well as in the form of lifetime streams of payment. Read the release at this website.Read the proposed rule at this site.
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