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Lifetime Income Disclosure

June 21, 2022

Keypoints.PNGThe SECURE Act legislation that was signed into law in 2019 included a requirement that a lifetime income disclosure be provided to defined contribution plan participants on their benefit statements. This disclosure illustrates the monthly payments the participant would receive if his/her total account balance were used to provide lifetime income streams.

To meet this need, Go-Retire participant statements will include this lifetime income projection annually. The calculation used for the projection is prescribed by the Department of Labor. Below is a sample illustration of the projection that is based off a template the Department of Labor provided in the guidance they issued regarding this new requirement. We will be introducing this on the participant statements that are delivered during the third quarter of this year.

For greater details on the requirement and assumptions that are used in the lifetime income disclosure, view the DOLpublication.

Please don’t hesitate to reach out to your Client Service Representative if we can answer any questions.

 lifetime income disclosure