A new disclosure requirement for ERISA-covered defined contribution plans requires compliance starting this year, and some remaining uncertainty shouldn't prevent ERISA-covered defined contribution plan sponsors from taking action.

Specifically, Section 203 of The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) amended ERISA to require plan sponsors to provide participants with a lifetime income disclosure at least annually. This new disclosure estimates the monthly income that a participant's plan account balance could produce if paid in a qualified joint and survivor annuity or single life annuity stream of payments, rather than in a lump-sum payment. These two income stream illustrations must be included on the benefit statement that participants are otherwise entitled to receive.