ComplianceFebruary 4, 2011

Senators Call for Retirement Income Disclosure

Three U.S. Senators introduced a bill that would require an annual statement to be sent to retirement plan participants, similar to the one sent by the Social Security Administration.

Reported by Rebecca Moore

A news release from the office of Senator Johnny Isakson (R-Georgia) said he, Jeff Bingaman (D-New Mexico), and Herb Kohl (D-Wisconsin) reintroduced their Lifetime Income Disclosure Act (S. 267), which would require 401(k) plan sponsors to inform participants of the projected monthly income they could expect at retirement based on their current account balance. By providing similar information to that of the annual Social Security statements, the Lifetime Income Disclosure Act would give American workers a more complete snapshot of their projected income in retirement, the Senators believe.

The reintroduction of the bill coincides with a hearing held by the Senate Health, Education, Labor & Pensions (HELP) Committee on simplifying retirement decisions for Americans (see “HELP Panel Hears Support for Auto Features, Education“).

“Half of American households will lack sufficient retirement income to maintain their pre-retirement standard of living, but many are unaware of their vulnerability. Our bill will empower Americans to determine whether they are on a path to a secure retirement,” said Bingaman in the statement.