For the life insurance industry, it's a victory that came only after years of battle.
The Treasury and Labor departments last month gave the green light to the inclusion of deferred-income, or longevity, annuities, which guarantee monthly income streams for retirees, in target-date funds seen in 401(k) and other defined contribution plans. Plan sponsors will be able to offer these annuities in qualified default investments to workers aged 55 or older without running afoul of ERISA's non-discrimination rules.
The move has the potential to unleash huge changes in the retirement industry, and is exactly the type of regulatory support the insurance industry has spent years promoting.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
