After a four-year rule-making process, the U.S. Department of Treasury and IRS have released final regulations intended to encourage participants in defined benefit pension plans to take part of their savings in an annuitized payment stream, as opposed to electing to take the entire benefit in a lump sum.
In the final rule published in the Federal Register on Sept. 9, regulators note that the Treasury Department and IRS “believe that many participants are better served by having the opportunity to receive a portion of their retirement benefits in annuity form while receiving accelerated payments for the remainder of their benefits to provide increased liquidity during retirement.”
Cathy Weatherford, CEO of the Washington, D.C.-based Insured Retirement Institute, which had lobbied for clarified rules that would expand participants choice in determining how they receive their benefits while still protecting the value of a lifetime income guarantee, issued a statement in support of the final rule.
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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.
