The Department of Labor (DOL) recently issued Temporary Implementing FAQs on the interim final regulations (IFR) that will require plan administrators of ERISA-covered defined contribution plans to include lifetime income illustrations (LII) on participant benefit statements at least once annually.1 The IFR take effect on September 18, 2021, and implement provisions of the Setting Every Community Up for Retirement Enhancement Act.
The FAQs cover the applicability date of the IFR (i.e., when the first statement that includes the LII must be sent) and whether the DOL will provide transition relief to comply with any changes to the IFR when the final rule is issued.
Specifically, the FAQs provide that:
Plan administrators may wish to begin determining how to comply with the LII requirements in the event transition relief is not provided and assuming the final rule does not differ significantly from the IFR.
1See “DOL issues interim final rule on lifetime income illustrations,” Insider, October 2020.
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Insider August 2021 | .2 MB |