ERISA 401(k) And Other Defined Contribution Plans Must Add Lifetime Annuity Illustrations to Benefit Statements
AuthorMichelle ("Mickey") Bartlett
The Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE Act”) amended ERISA to require ERISA-covered 401(k) and other defined contribution plans to provide two estimated lifetime income (annuity) illustrations to participants on their benefit statements.
If not already issued, plans with participant-directed investments must incorporate their first lifetime income illustrations on their quarterly statements ending June 30, 2022.
Defined contribution plans without participant-directed investment options must include the first lifetime income illustrations on the annual statements for the first plan year ending on or after Sept. 19, 2021. For calendar-year plans, this will be the annual statement for the calendar year ending Dec. 31, 2021, which must be furnished no later than the extended due date for the plan’s Form 5500 filing (i.e., Oct. 15, 2022).
Please see our Oct. 21, 2021 article for further details.
We can work with you and your service providers to make sure the illustrations are compliant.
Please contact these attorneys for more information: Edward C. Hammond, Brad Oxford, Luke D. Bailey, James R. Olson, Charles M. Russman, Mickey Bartlett, and Jim Brophy.
Nothing in this article constitutes professional legal advice nor is intended to be a substitute for professional legal advice.
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