Pension Consultants, Inc. recently responded to the Department of Labor’s request for feedback on two major issues in the retirement plan industry.
The first of these issues is whether and how the government should promote lifetime income products in retirement plans. While our firm recognizes the importance and necessity for participants to properly prepare for retirement, we are not in favor of requiring lifetime income options in retirement plans. Most plans today with annuity rules fail to comply because of burdensome notice requirements; however, we recognize the need for participants to understand the spend down phase. To learn more about this issue and read our entire response, click here.
The second issue was related to new proposed regulations on participant investment advice. The new proposed regulations are meant to replace the final regulations that were issued in January 2009. The DOL has attempted to address concerns regarding the administrative class exemption. We are generally in agreement with the new proposed regulations. We agree with the DOL’s determination to withdraw the final rule which would limit the fee leveling requirement at the individual level, rather than the fiduciary advisor entity level. To view our response, click here.
