U.S. Rep. Donald Norcross (D-NJ) has reintroduced a measure he maintains would enhance retirement security via an annuity initiative.
The Lifetime Income For Employees (LIFE) Act of 2023 would allow annuities to be a default in employer-provided 401(k) plans as a means of supplying employees with a steady, guaranteed income during retirement.
“Unfortunately, many Americans feel that retirement is out of reach, including young people who are just beginning their careers,” said Norcross, a member of the House Committee on Education and Labor’s Health, Employment, Labor, and Pensions Subcommittee. “As a retired electrician, I know first-hand how important pensions are to workers who rely on them for their retirement. That’s why I am introducing the LIFE Act, to provide hard-working Americans with a guaranteed income and financial security so they can retire with dignity.”
The measure would amend the present Qualified Default Investment Alternative (QDIA) safe harbor regulations to enable, but not require, a QDIA to include as part of its mix of asset classes an annuity fixed income component providing a guaranteed return on investments and the option to convert assets into a guaranteed lifetime income stream.
Bill proponents said studies determining the retirement picture for some Americans is bleak and Demographics play a large role, with baby boomers retiring and people living longer.