Three U.S. senators have brought back a bill, which would require plan sponsors to project how much monthly income workers can expect at retirement based on their current retirement account balance.
Reintroduced by Sens. Jeff Bingaman, D-N.M, Johnny Isakson, R-Ga., and Herb Kohl, D-Wis., the Lifetime Income Disclosure Act is patterned onthe Social Security Administration's annual statements, which are mailed annually to working Americans to inform them of estimated monthly benefits based on their current earnings.
Specifically, under the Act, defined contribution plans subject to ERISA – including 401(k) plans – would be required annually to inform participants of how the account balance would translate into a monthly income stream based on age at retirement and other factors.
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