Back to the future – Should defined contribution plans offer lifetime income?

Description

Abstract: Employer-sponsored plans have become the most common way to provide retirement income for many workers. In the past 20 years, the retirement plan of choice has shifted from defined benefit (DB) plans to defined contribution (DC) plans. The Department of Labor (DOL) and Department of the Treasury are working with the retirement plan industry to increase the use of another option. This article discusses the agencies’ Request for Information to determine whether to take steps to enhance retirement benefits with arrangements that provide for a lifetime stream of income at retirement, similar to DB plans.