A ‘Blueprint’ for Retirement Plan Reform: IRI

401k, 401k retirement plans, IRI, insured retirement institute
Change would be good in this case.

Insured Retirement Institute (IRI) is working to address what it sees as a challenging retirement landscape and lack of worker access to employer-based plans.

In its recently released “2018 Retirement Security Blueprint,” IRI outlines several ways policies need to change in order to encourage employees to save.

The Blueprint includes calls to:

Maintain and enhance the current tax treatment for retirement savings

Policies should continue to include tax deferral on retirement plans, as well as protect distinct types of plans. Incentives to promote usage of guaranteed lifetime income products should be introduced.

Expand opportunities for retirement savings

Legislation should mandate all but the smallest companies offer employer-sponsored retirement plans, employees should be auto-enrolled and auto-escalation should be encouraged. Barriers preventing small businesses from creating multiple employer plans should be eliminated, and access to the start-up retirement credit for small businesses offering plans should be improved.

Increase access to lifetime income products

Employers should be allowed to provide guaranteed lifetime income products, such as annuities, as default investment options, and these products should be incentivized and portable. Additionally, the required minimum distribution rules must be amended to reflect longer lifespans.

Help savers make decisions about their finances

Lifetime income estimates should be required on workers’ benefit statements, and employers should be allowed to send electronic disclosures for retirement plans in order to better inform participants of their account standings.

Provide more resources to protect older Americans from financial exploitation

Advisors should be allowed to report suspected financial abuse, and more funds should be allocated to federal programs supporting state Adult Protective Service agencies.

“The Blueprint was constructed on the pillars of expanding opportunities to save, increasing access to lifetime income in retirement, helping savers make decisions about their finances for their retirement and protecting older investors from financial exploitation,” IRI Senior Vice President and General Counsel Lee Covington said in a statement. “We look forward to presenting and discussing these proposals with members of Congress, the Administration and state regulators.”

Jessa Claeys
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Jessa Claeys is a writer, editor and graphic designer.

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