The Department of Labor (DOL) is floating a notice of proposed rulemaking (NPRM), published in the Federal Register this past week, that would require administrators of defined-benefit plans, such as 401(k)s, to project a lifetime income stream based on investment level, along with an account balance as is currently required.
The publication opened up a 60-day public commentary period.
The proposal also is floating ideas to allow participants to set up a partial annuitization as an alternative to taking a lump sum or stream of payments. The proposal also seeks to permit retirees to use some of their savings to buy longevity insurance.