With the continuing decline of the defined benefit plan system and the growth of the defined contribution plan system, increasing numbers of employees will be retiring with just an account balance under a 401(k) plan and/or an IRA. Aside from Social Security benefits, such employees will not have any source of guaranteed income for life.
If retirees draw down their retirement savings over their expected life expectancy, half of them will outlive their private retirement savings. With life expectancies continuing to increase, the risk of retirees outliving their retirement savings is one of the critical public policy challenges of the next decade in the retirement policy.
もし退職者が自分自身が生き延びると思っていた期間以上の期間、退職金を受け取ったなら、彼らのうちの半分は自分達の個人的な積立金より大きな額となるだろう。 平均余命が増加し続けている状況であるため、退職者が彼らの退職金より長生きするというリスクは退職者政策における、次の10年間の非常に重要な公共政策の課題の1つだ。
The key issue is how to make employees aware of this risk and how to educate employees about lifetime income issues.The Act would require benefit statements to include the annuity equivalent of an employee’s benefit — a small step, but one that can make a significant difference in beginning to tackle the public policy challenge. Under present law, employees participating in DCplans, such as a 401(k) plan, are entitled to receive a benefit statement showing the balance in their account. With respect to plans that permit the employees to direct the investments in their account, these statements must be provided quarterly; where the employer directs the investments, the benefit statements can be provided annually.
With respect to a DB plan, benefit statements are generally required to provide participants with certain information, including the participant’s total benefit and the participant’s vested benefit. Additionally, in the case of quarterly benefit statements, the statement is generally required to inform participants of how the benefit is invested; explain any restrictions on the participant’s right to control such investments; explain the importance of investment diversification; and direct the participants to a DL web providing information with respect to investing.Under the proposal, DB plans subject to ERISA would be required to include “annuity equivalents” on benefit statements provided to employees.
加えて、四半期給付計算書の場合、計算書は通常、参加者がどのように給付を投資するかを報告するために要求される；そのような投資を管理するための参加者の権利の制限を説明する；投資分散の重要性を説明する；参加者を、投資に関する情報を提供しているDLウェブへと向ける。その提案のもとで、ERISAを仮定するDBのプランは、雇用者に供給される急計算書に「年金等価額」を含む事が要求されるであろう。
An annuity equivalent would be the monthly annuity payment that would be made if the employee’s total account balance were used to buy a life annuity that commenced payments at the plan’s normal retirement age (generally 65). The statement would be required to show the monthly annuity payments under both a single life annuity and a qualified joint and survivor annuity The annuity equivalents would only be required to be provided once a year, even where quarterly statements are otherwise required. Thus, where quarterly statements are otherwise required, annuity equivalent need only be indexed on one such statement each year.
