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DOL Proposed Rule Expected to Include New Lifetime Income Estimate

The DOL is moving forward with its plan to issue a new proposed regulation on retirement plan benefit statements. Reportedly, the proposed regulation will include the DOL’s initiative on lifetime income by providing for disclosure of an equivalent annuity benefit. This would be in the form of an estimate of what the participant’s current account balance would provide as an annuity benefit beginning at normal retirement age.
 
The DOL submitted the proposed rule on benefit statements to the White House’s Office of Management and Budget (OMB) for its review on Dec. 7, 2012. The OMB review process normally takes at least 90 days, so expect the proposed rule to be issued in mid-March. There will be a period for the public and affected parties to comment on the proposal, as well as a public hearing.

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