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US S1574

US S1574
Lifetime Income Disclosure Act


summary

Introduced
05/21/2019
In Committee
05/21/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

A bill to amend the Employee Retirement Income Security Act of 1974 to require a lifetime income disclosure. This bill requires pension benefit statements to include a lifetime income disclosure at least once during any 12-month period. The disclosure must set forth the lifetime income stream equivalent of the total benefits accrued with respect to the participant or beneficiary. The "lifetime income stream equivalent of the total benefits accrued" is the amount of monthly payments the participant or beneficiary would receive if the total accrued benefits were used to provide lifetime income streams based on certain assumptions, including that the participant or beneficiary has a spouse of equal age and a single life annuity. The Department of Labor must issue a model lifetime income disclosure, assumptions that plan administrators may use in converting total accrued benefits into lifetime income stream equivalents, and related rules. No plan fiduciary, sponsor, or other person may be liable under the Employee Retirement Income Security Act of 1974 (ERISA) solely due to the provision of lifetime income stream equivalents derived in accordance with the assumptions and related rules issued by Labor, including explanations contained in the model lifetime income disclosure.

AI Summary

This bill amends the Employee Retirement Income Security Act (ERISA) to require pension benefit statements to include a "lifetime income disclosure" at least once per year. The disclosure would show the monthly payments a participant or beneficiary could receive if their total accrued benefits were used to provide lifetime income streams, such as a qualified joint and survivor annuity or a single life annuity, based on certain assumptions specified by the Department of Labor. The bill also requires the Department of Labor to issue a model disclosure and rules on the assumptions that can be used for these calculations, and provides liability protection for plan fiduciaries who provide these lifetime income estimates in accordance with the Department's guidance.

Committee Categories

Health and Social Services

Sponsors (2)

Last Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (on 05/21/2019)

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