Headlining the Insured Retirement Institute’s 2026 Retirement Security Blueprint—released today—is a call for a lifetime income distribution option to be required as a defined contribution plan feature.
The 2026 Blueprint, which includes 33 proposals IRI says would enhance and strengthen American retirement security, said requiring such an option would alleviate what remains a significant challenge for the more than 30 million American workers who will turn 65 between now and 2030.
“What we’re talking about would require a bill which has not yet been introduced, but we are engaged in discussions with members of Congress about such a bill.”
IRI’s Paul Richman
“Today, most defined contribution plans do not offer an easy way for workers to convert their nest egg into a steady, reliable and protected guaranteed monthly income that arrives in their mailbox like clockwork throughout their retirement,” said IRI Chief Government & Political Affairs Officer Paul Richman during a media briefing Monday. “The Blueprint is recommending that Congress enact a law requiring defined contribution plans to include as a plan feature a lifetime income distribution option that participants can choose for their accounts.”
The 2026 Blueprint cites surveys showing that between half and two-thirds of workers and retirees worry their savings will not last, and nearly two-thirds say they fear running out of money in retirement more than death itself.
“Including a lifetime income distribution option as a required feature in plans will help workers not only build their retirement nest eggs, but more importantly will help them gain peace of mind they will not outlive their savings in retirement,” Richman added.
Notably, no bill that would directly accomplish IRI’s objective of requiring a lifetime income option as a plan feature has been introduced in Congress at this point.
“What we’re talking about would require a bill which has not yet been introduced, but we are engaged in discussions with members of Congress about such a bill,” Richman said, stressing that importantly, the goal is merely to require that it be offered as a plan feature.
“Nobody would be required to choose that,” Richman said. “Nobody’s required to take it, and it’s just that it would be added as a plan feature, just as auto enrollment and auto escalation now is required [thanks to SECURE 2.0] to be a part of plans that are offered.”
QDIAs and Q-PONs
IRI’s 2026 Blueprint also calls for Congress to enact legislation providing that employers who offer protected, guaranteed lifetime income solutions as a default distribution option for participants in DC plans will have satisfied their fiduciary duties under ERISA, so long as participants are notified of the default annuitization option and have the right to opt-out at the time of distribution.
IRI is also calling for Congress to enact legislation that would establish a “qualified payout option” (Q-PON) that requires employers who have at least 10 employees and have provided a plan for at least 3 years to offer a combination of income and payout solutions that participants can select from at retirement.
Some options that could be made available as a Q-PON include protected, guaranteed lifetime income solutions, systemic withdrawal options, managed payout options, and lump sum withdrawals. Q-PONs would apply to participants or beneficiaries or participants of a 401(k), profit-sharing 401(a), 403(b), or “Starter” 401(k) plan.
Advancing a dialogue
IRI’s annual Blueprints are intended to act as a guide for a dialogue with federal policymakers about pragmatic, bipartisan proposals designed to build upon the progress Congress has already made to strengthen retirement security—particularly as relating to lifetime income solutions.
“The anxiety Americans feel about outliving savings is real, and Congress and the administration have an opportunity to provide more meaningful lasting bipartisan solutions to address these concerns,” said IRI President and CEO Wayne Chopus. “We’ve had productive discussions with lawmakers on both sides of the aisle of future legislative efforts to further advance lifetime income solutions and defined contribution plans, and even during an election year retirement security remains a strongly bipartisan issue.”
Last November, IRI announced an action plan to encourage Congress to enhance the retirement security of America’s workers and retirees. Since then, momentum has been building. The House passed the INVEST Act, which included 403(b) plan parity legislation; the Senate HELP Committee held a hearing on retirement issues; the House held a hearing on lifetime income; and the President unveiled a retirement proposal in his State of the Union address.
At that January House hearing before the Subcommittee on Health, Employment, Labor, and Pensions, Chopus testified for IRI—the only trade association invited—and outlined several policy recommendations that are included in IRI’s Retirement Security Blueprint.
“These are practical, common-sense steps that build on what Congress has already accomplished,” Chopus told the subcommittee.
Beyond the call for a lifetime income solution to be mandated as a plan feature, IRI’s 2026 Blueprint policy recommendations to Congress also include:
• Auto Re-Enroll Act of 2025: Prompts workers who have opted out of their retirement plan’s auto-enrollment feature to periodically reevaluate their decision, encouraging participation as their careers and financial situations evolve.
• Helping Young Americans Save for Retirement Act: Aims to remove the age barrier that currently prohibits younger Americans from participating in workplace retirement plans, enabling them to begin saving earlier in their careers.
• Lifetime Income for Employees Act: Directs the Department of Labor to lift regulatory barriers that currently hinder the offering of protected, guaranteed lifetime income products within defined contribution plans. This would provide workers with more opportunities for sustainable retirement income.
• Retirement Fairness for Charities and Educational Institutions Act of 2025: Seeks to provide parity for 403(b) retirement plan participants by allowing their investment menus to include lower-cost options like collective investment trusts and unregistered insurance company separate accounts, which are currently restricted by federal securities law.
• Improving Disclosure for Investors Act: Directs the SEC to issue a rule permitting the electronic delivery and access to documents required of registered investment companies. It preserves each investor’s right to receive paper information if preferred.
• SECURE 2.0 Act Amendment: Proposes an amendment to Section 202 of the SECURE 2.0 Act to better meet the diverse needs of retirement savers. It would make indexed and variable annuity contracts with guaranteed lifetime income benefits eligible for treatment as Qualified Longevity Annuity Contracts (QLACs).
• Annual Defined Contribution Plan Notice Amendment: Calls for an amendment to Section 105 of ERISA. It would enhance the required annual plan notices to include a warning about the risks of outliving retirement savings.
• Clarifying Existing Annuity Safe Harbor: Clarify that the annuity selection safe harbor in the SECURE Act covers employer selection of an annuity contract. This clarification means it is not limited only to the selection of an insurance provider for the annuity contract.
Check out the complete 2026 IRI Federal Retirement Security Blueprint here.
SEE ALSO:
• IRI Issues ‘To Do’ List for Congress to Improve Retirement Security
• IRI Reveals Top Retirement Legislation Priorities for 2025
• Trump Retirement Plan Proposal