Institutional Income Annuities Overview for Employers

This document is a guide that outlines key provisions of the Setting Every Community Up for Retirement Enhancement (SECURE) Act and the SECURE 2.0 Act, which aim to improve access to lifetime income options in workplace retirement plans. It details the safe harbor for annuity carrier selection, which protects employers when choosing an insurer for annuities in their 401(k) plans, simplifying the selection process by relying on state insurance regulation. Additionally, the guide explains the lifetime income disclosure requirement, mandating that annual plan statements include a monthly income equivalent of an employee's savings, helping employees understand their retirement savings needs. The SECURE 2.0 Act further enhances access to Qualifying Longevity Annuity Contracts (QLACs) by increasing the dollar limit and eliminating certain thresholds. The guide emphasizes the importance of guaranteed income streams for retirement planning, noting that many retirees deplete their savings too quickly. It concludes with a call to action for employers to consider enhancing their retirement plans with annuity options.