03.04.24
DC Plans Wrestle With Cost, Complexity and Other Concerns When Considering In-Plan Retirement Income Solutions
by: Robert Steyer
Despite benefiting from regulatory and commercial advances designed to make in-plan retirement solutions more attractive, defined contribution executives continue to wrestle with concerns about cost and complexity as well as compatibility among employers and record keepers. "Our research suggests that DC plan advisors and consultants have reservations" about in-plan annuities, said a November report by LIMRA. "About eight in 10 believe that income solutions are best placed outside the DC plans for average participants." However, LIMRA also found that 70% of workers believe in-plan guaranteed income options should be offered by their employers. "Uncertainty about fiduciary liability may linger" even though the SECURE Act of 2019, and "other regulatory changes in the past few years, likely alleviated some of these concerns," said the report.
Read the full article on Pensions & Investments