We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (17,774)
  • Industry Conferences (3)
  • Industry Job Openings (3)
  • Moore on the Market (207)
  • Negative Media (139)
  • Positive Media (73)
  • Sheryl's Articles (656)
  • Wink's Articles (265)
  • Wink's Inside Story (238)
  • Wink's Press Releases (99)
  • Blog Archives

  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • Treasury Calls for the Creation of an Annuity Oversight Bureau

    October 31, 2017 by Lee Barney

    The Treasury Department believes that if an expert bureau were created to assess the viability of annuity providers, retirement plan sponsors would be more inclined to offer in-plan guaranteed lifetime income options.

     

    In a new report, “A Financial System That Creates Economic Opportunities,” the U.S. Treasury Department discusses the advantages of lifetime income products, i.e. annuities.

    The department says that research from the Center for Retirement Research at Boston College has shown that half of working-age households may not be able to maintain their standard of living in retirement, primarily due to longevity risk.

    “Although 401(k) plans and other defined contribution plans are important retirement savings vehicles, they differ from traditional pension plans in that 401(k) plans are designed and used primarily for asset accumulation rather than as a source of guaranteed income,” the Treasury Department says in its report. “In addition, only about two-thirds of private sector workers have access to any type of employer-sponsored retirement plan, and even workers enrolled in a 401(k) plan have limited access to guaranteed lifetime income under the plan.”

    The department notes that annuities are the only product on the market that offers guaranteed income, but employers “cite concerns over legal liability under the Employee Retirement Income Security Act (ERISA) as the principal deterrent to offering an in-plan annuity option.”

    While the Department of Labor (DOL) issued a safe harbor rule in 2008 with respect to annuities, saying that employers who “appropriately” consider “sufficient” information as to whether the annuity provider will be able to make payments under the annuity contract will be protected from legal liability in the case that the insurer becomes insolvent, the Treasury says the terms are not clearly defined—and that the safe harbor still requires employers to consider whether the provider will be solvent decades into the future. Thus, Treasury says, “many employers and their professional advisers are not comfortable relying on the safe harbor.”

    While the DOL subsequently issued a field assistance bulletin in 2015 on the selection of annuities, it did not specifically address in-plan annuities, Treasury says. Therefore, the Treasury Department says it, and the DOL, should “develop proposals on how to establish or certify one or more expert, independent fiduciary entities to assess the long-term financial strength of annuity providers. These assessments, which could be in the form of ratings or other specific metrics, could assist ERISA-governed plan sponsors in complying with their fiduciary duty obligations in selecting annuity providers for plans.”

    In addition, the Treasury Department says it supports the DOL’s fiduciary rule. However, “a delay in full implementation is appropriate until the relevant issues are evaluated and addressed to best serve retirement investors. Treasury supports the Securities and Exchange Commission’s (SEC)’s engagement on this topic and encourages the DOL and SEC to work with states to evaluate the impacts of a fiduciary rule across markets.

    A fact sheet from the report can be downloaded here, and the full report can be downloaded here.

    Originally Posted at PlanSponsor on October 27, 2017 by Lee Barney.

    Categories: Industry Articles
    currency