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The retirement planning community is anxiously awaiting a final rule from the Labor Department on the delivery of lifetime income illustrations on plan participants’ benefit statements, as the interim rule that takes effect in September is flawed because the illustrations are confusing, according to ERISA lawyers from Faegre Drinker.

The interim rule implements Section 203 of the Setting Every Community Up for Retirement Enhancement (Secure) Act of 2019, which was signed into law on Dec. 20, 2019. The Secure Act requires that participants be given lifetime income illustrations on their benefit statements — for instance, on their quarterly 401(k) plan statement. The illustrations are designed to help workers estimate how their current savings in a defined contribution plan translates into lifetime monthly payments.

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Melanie Waddell

Melanie is Washington Bureau Chief, Investment Advisory Group. She also covers regulatory and compliance issues. Her column, The Playing Field, appears in Investment Advisor and on ThinkAdvisor.com, and she also writes the briefing and produces the podcast, Human Capital. Earlier in her career, Melanie covered financial issues at American Banker/Thomson Media publications in Washington and New York. She also wrote freelance articles for Institutional Investor in New York. You can reach her at [email protected] On twitter: @Think_MelanieW

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