The recently enacted SECURE Act includes a new requirement for
employers that sponsor tax-favored defined contribution retirement plans that
are subject to ERISA. Specifically, the law will require that benefit
statements sent to plan participants include a lifetime income disclosure at
least once during any 12-month period. It will need to illustrate the monthly
payments that an employee would receive if the total account balance were used
to provide lifetime income streams, including a single life annuity and a qualified
joint and survivor annuity for the participant and his or her surviving spouse.
The requirement won’t go into effect until 12 months after the DOL issues a
final rule.