The American Council of Life Insurers (ACLI) issued the following statement on the Department of Labor’s draft lifetime income illustration proposal:

Washington, D.C. (May 9, 2013) — “A draft proposal from the Department of Labor (DOL) would help workers understand how their retirement savings translate into lifetime income. The proposal represents a significant step forward in educating workers about retirement and helping them achieve their retirement security goals.

“Under the draft proposal, private-sector defined contribution retirement plans would show plan participants both the lump-sum value of their retirement accounts and how that sum translates into guaranteed monthly payments at retirement.

“Including lifetime income illustrations in retirement plans also has bipartisan legislative support. In the last session of Congress, the Lifetime Income Disclosure Act was introduced in the House and Senate. Many of the bill’s proponents are working on its reintroduction.

“A lifetime income illustration can help workers make more informed decisions about retirement and retirement savings. Most workers recognize the need to accumulate retirement assets, but many may not think about the need to manage their assets over the course of a retirement that could last 20 or 30 years. Understanding what a lump sum really means in terms of paying the monthly bills will help countless workers ensure they are on the right path to meeting their retirement goals.

“DOL is now seeking public comment as it considers advancing the draft proposal through the rulemaking process. ACLI looks forward to reviewing the proposal with its members and providing comments to DOL.” 

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with more than 300 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing more than 90 percent of industry assets and premiums. Learn more at www.acli.com.