Blue Ridge ESOP Associates Industry News

Mark Swanson

Recent Posts

Expressing Defined Contribution Plan Balances as Annuity Payments on Participant Statements

Posted by Mark Swanson

Aug 31, 2021 10:12:47 AM

Provisions in the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”) require defined contribution plans to include illustrations of estimated lifetime income stream of payments. The idea is to provide information to participants that if the account balance were converted to annuity payments how much income would be payable to the participant (based on various assumptions) in both the form of payments over the participant’s lifetime and payments over the joint lifetimes of the participant and survivor. The Department of Labor (DOL) published an Interim Final Rule (IFR) on September 18, 2020 that becomes effective September 18, 2021. On July 26, 2021 the DOL issued the Temporary Implementing Frequently Asked Questions (TIFAQ) to clarify some of the provisions in the IFR that, frankly, were a little confusing.

Read More