NAIFA President Robert Smith submitted comments to the Department of Labor’s Phyllis C. Borzi on the Advanced Notice of Proposed Rulemaking regarding lifetime income projections on the participant statements of retirement savings plans.
“We support the Department’s efforts to more fully educate plan participants about their retirement accounts and how much lifetime income those accounts might generate,” Smith said, providing detail in the following three areas:
- Assumptions and Methods should be simple;
- Projections should not be burdensome to plan sponsors, service providers or record keepers;
- Safe Harbors, Disclosures and Disclaimers should be broad, robust and easily understood.
“We trust that the Department will carefully consider the comments and concerns of experts in actuarial assumptions and computations, in the development of systems to maintain and report projections, and other technical issues,” Smith said.