The SECURE Act generally requires defined contribution plans to provide participants a lifetime income illustration that estimates their total account balance as a lifetime monthly payment, similar to a pension or annuity payment.
No action is required by you, plan sponsors or participants to satisfy this requirement for RecordkeeperDirect® and PlanPremier®-TPA plans.
Lifetime income illustrations will be added to RecordkeeperDirect and PlanPremier quarterly participant statements, beginning with the June 30, 2022, statement. We communicated this change to plan sponsors in April.
Monthly income will be expressed in two ways: as a single life annuity and a qualified joint and survivor annuity. These income stream illustrations may help participants better plan for retirement by converting the amount they’ve already saved into a practical, understandable projection. See a sample statement:
For more information about the lifetime income requirements, visit the U.S. Department of Labor website. If you have any questions about the participant statements, call (800) 421-6019 for RecordkeeperDirect service or (877) 872-5159 for PlanPremier service.