For Immediate Release
Washington, DC – The ERISA Industry Committee (ERIC), together with other associations and companies, sent a letter to Congress expressing support for the passage of retirement legislation that would enhance retirement savings opportunities during this Congress. The letter also asked that lawmakers modify the Lifetime Income Disclosure Act (LIDA) provision, making options more effective and flexible for plan sponsors. Those changes, include:
- Providing greater flexibility to plan sponsors on how they communicate to plan participants on the importance of saving for a lifetime of needs
- Giving participants the ability to model retirement income options based on individual circumstances.
“ERIC is concerned that Congress’s current efforts to require plan sponsors to provide a disclosure will drive up costs and burdens on plan sponsors and cause confusion among participants,” said Will Hansen, Senior Vice President of Retirement and Compensation, ERIC. “We strongly believe that there are better ways to engage with employees and have them actively participate in saving for their future.”
ERIC, a staunch opponent of LIDA since its introduction in 2009, has voiced concerns about the communication obligation between the employer and employee-participants and disclosure requirements that have little relevance to an employee’s personal circumstances.
ERIC has provided Congress with a proposed alternative approach to LIDA that would support and coordinate financial planning tools that companies already provide to their employees and would help make significant improvements in retirement security. The approach also provides flexibility within the mandate for plan sponsors to tailor communications based on the makeup of the workforce and the retirement plan distribution options available to plan participants.
“ERIC looks forward to working with lawmakers to enhance retirement savings opportunities in a more effective and flexible manner.”
To read ERIC’s letter, click here.