The Department of Labor is considering new reporting requirements for defined contribution plan statements to participants. The new regulations would require statements to express the participant’s current account balance as an estimated lifetime stream of payments in addition to the total account balance. It is also considering requiring participant statements to project the expected balance at retirement and what the estimated payments for the projected balance would be. These proposed regulations are intended to motivate participants to save more for retirement.
Do you think these additional requirements will motivate participants?
What difficulties do you foresee in implementation?