A bipartisan bill to allow plan sponsors to use annuities as a qualified default investment alternative in defined contribution plans has been reintroduced in the House.
For the third consecutive congressional session, Reps. Donald Norcross, D-N.J., and Tim Walberg, R-Mich., introduced the Lifetime Income For Employees Act of 2023, or LIFE Act, on June 9. The two congressmen previously introduced the bill in February 2022 and December 2020, but no further action was taken.
Under the bill, text for which was not immediately available, retirement plan sponsors would be allowed to use lifetime income solutions that have delayed liquidity features as QDIAs for a portion of contributions made by participants who have not made investment selections, explained the Insured Retirement Institute in a statement of support.
"As a retired electrician, I know first-hand how important pensions are to workers who rely on them for their retirement," Mr. Norcross said in a news release. "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."
Paul Richman, IRI chief government and political affairs officer, said in a statement that allowing for "higher-yielding lifetime income products with delayed liquidity features to be offered as part of the default, in addition to the existing annuities that are currently available as default investments, would help further address the risk of retirees not having enough income in retirement."