Questions about the portability of in-plan guaranteed income products have dissuaded some sponsors from offering annuities in 401(k) investment menus, even as regulators and retirement advocates continue to lobby for wider adoption in workplace plans.
A new issue brief from Institutional Retirement Income Council, a non-profit think tank with members that include some of the largest retirement plan providers, suggests sponsors' portability concerns are based in old perceptions.
"We now operate in a more mature income product market where recordkeepers handle basic processing for guaranteed lifetime income products within existing processes like trading, enrollment, contributions, exchanges, and display of account value," according to language in In-Plan Guaranteed Lifetime Income: Debunking Portability Myths.
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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.
