My recent blog post, “What Employers Should Know About the SECURE Act’s Lifetime Income Provisions,” discusses the Setting Every Community Up for Retirement Enhancement Act of 2019, which was signed into law on December 20, 2019. Employers who sponsor defined contribution retirement plans, such as 401(k) plans, should monitor these developments.

Following is an excerpt:

Predictable lifetime income is often of paramount concern to retirees.  Yet, as employer-sponsored retirement plans have moved away from the traditional pension plan model, participants in defined contribution plans may be faced with managing their own account balances and plan distributions, which may not lead to a steady stream of lifetime income in retirement.  The Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”), signed into law on December 20, 2019, may aid in securing retirements.   Employers who sponsor defined contribution retirement plans, such as 401(k) plans, now have: (1) new participant disclosure obligations; (2) the ability to adopt certain portability design features related to lifetime income investment options; and (3) guidelines to encourage inclusion of lifetime income investment options in plan investment line-ups. …

Read the full post here.