PLANSPONSOR - August/September 2021 - 6

RULES & REGULATIONS
EBSA Clarifies Timing for Lifetime Income
T
he Department of Labor (DOL)'s
Employee Benefits Security Administration
(EBSA) has answered
questions regarding when plan sponsors
and their providers must include lifetime
income illustrations on defined contribution
(DC) plan participants' retirement
plan statements.
The Setting Every Community Up
for Retirement Enhancement (SECURE)
Act of 2019 amended the Employee
Retirement Income Security Act (ERISA)
by adding the requirement that plans
supply two lifetime income illustrations,
furnished at least annually, to benefits
statements for individual account plans.
The DOL published an interim final rule
last September 18 specifically laying out
the assumptions and other factors that
plan administrators must use for calculating
the estimated lifetime income
stream that could be provided by participant
account balances.
Once a Year Is Enough
The agency said its solicitation of public
comments on the interim final rule
received 36 submissions, and many
... plans that must issue quarterly
statements may incorporate their first
lifetime illustration on any of those
up to the second calendar quarter of
next year-i.e., ending June 30, 2022.
6 PLANSPONSOR.COM August - September 2021
Art by Kyle Smart
commenters requested clarification
regarding the applicability date of the rule
and the method for furnishing benefit
statements. In some cases, commenters
asked for transition relief to ensure affected
parties have enough time to implement the
rule's requirements.
In the FAQ document it just released,
the DOL explained that the law provides
that participant-directed plans, which are
required to furnish quarterly benefit statements
to participants, must include the
lifetime income illustrations on only one
such statement in any 12-month period.
So plans that issue quarterly statements
must first comply with the interim final
rule on a benefit statement for a quarter
ending within 12 months after the effective
date of this September 18.
For example, the document says,
plans that must issue quarterly statements
may incorporate their first lifetime
illustration on any of those up to the
second calendar quarter of next year-i.e.,
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PLANSPONSOR - August/September 2021

Table of Contents for the Digital Edition of PLANSPONSOR - August/September 2021

To Ensure All Are Well
2021 PLANSPONSOR National Conference
Equipped for Anything?
The Security of Savings
Take a Load Off
PLANSPONSOR - August/September 2021 - Cover1
PLANSPONSOR - August/September 2021 - Cover2
PLANSPONSOR - August/September 2021 - 1
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PLANSPONSOR - August/September 2021 - To Ensure All Are Well
PLANSPONSOR - August/September 2021 - 17
PLANSPONSOR - August/September 2021 - 18
PLANSPONSOR - August/September 2021 - 19
PLANSPONSOR - August/September 2021 - 2021 PLANSPONSOR National Conference
PLANSPONSOR - August/September 2021 - 21
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PLANSPONSOR - August/September 2021 - 29
PLANSPONSOR - August/September 2021 - Equipped for Anything?
PLANSPONSOR - August/September 2021 - 31
PLANSPONSOR - August/September 2021 - 32
PLANSPONSOR - August/September 2021 - 33
PLANSPONSOR - August/September 2021 - The Security of Savings
PLANSPONSOR - August/September 2021 - 35
PLANSPONSOR - August/September 2021 - Take a Load Off
PLANSPONSOR - August/September 2021 - 37
PLANSPONSOR - August/September 2021 - 38
PLANSPONSOR - August/September 2021 - 39
PLANSPONSOR - August/September 2021 - 40
PLANSPONSOR - August/September 2021 - Cover3
PLANSPONSOR - August/September 2021 - Cover4
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