Regulatory and Legislative

Proposal Allowing Annuities as QDIA Re-Introduced

FuturePlan ERISA Team July 11 2023

Representatives Donald Norcross (D-NJ) and co-sponsor Tim Walberg (R-MI) have re-introduced the Lifetime Income for Employees Act. H.R. 3942 would allow annuities as a default investment in 401(k) plans.

The Act would direct the Secretary of Labor to amend the current Qualified Default Investment Alternative (QDIA) safe harbor regulations to allow the inclusion of an annuity fixed income component as part of its mix of asset classes to provide a guaranteed return on investments and the option to convert assets into a guaranteed lifetime income stream. The covered annuity contract must meet certain liquidity and participant notice criteria.

The bill has been referred to the House Committee on Education and the Workforce for further consideration.

Defined Contribution Plan Legislative updates

Regulatory and Legislative

PBGC Announces 2025 Inflation Adjustments for Civil Penalties

PBGC Announces 2025 Inflation Adjustments for Civil Penalties

The Pension Benefit Guaranty Corporation has published in the Federal Register inflation-adjusted penalty amounts for failure to provide certain notices or other material information and for failure to provide certain multiemployer notices.


Show more