Are you Saving for Retirement? Are You Saving Enough?
The Department of Labor thinks this is a great question, one to which everyone should know the answer. The DOL released its agenda for proposed rules over the 2012-2013 fiscal year in hopes of offering guidance to ERISA-governed contribution plans, on how to disclose information to participants as well as requiring them to give income projections to the participants. Here is what they said:
Individual account plans that permit participant direction must provide the pension benefit statement quarterly, and individual account plans that do not permit participant direction must provide the statement annually. As part of this initiative, the Department will explore whether, and how, an individual benefit statement should and could present a participant’s accrued benefits in a defined contribution plan (i.e., the individual’s account balance) as a lifetime income stream of payments in addition to presenting the benefits as an account balance.
The idea is to change the focus of 401(k) and 403(b) to be viewed as accounts used as retirement income. This change in perspective could be a noteworthy shift allowing people to better plan for retirement, and this may even lead to more funds for a retirees. Hopefully we will see a more secure retirement group come out of this change.
Here is a useful tool you can start using now to help you plan for your retirement:
The bottom line is, any issue involving employment law can get tricky fast. Have the right team on your side.
Call United Employees Law Group TODAY.
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