Retirement Plans Are Bracing for Changing Income Disclosure Rule

A U.S. Labor Department interim final rule requiring employers to issue retirement plan participants lifetime income illustrations is adding to concerns in the industry over the contents of the rule itself and the department’s repeatedly changing standards of disclosure.

Under the interim regulation that takes effect Sept. 18, plan sponsors must illustrate how participant savings will translate into monthly income later in life, no matter their age or if that money would grow over a career’s worth of saving. That’s a major point of contention for recordkeepers and financial advisers who say the disclosures would be useless or even confusing ...