Please note: As of January 20, 2021, information in some news releases may be out of date or not reflect current policies.
News Release
Labor Department Clarifies Existing Guidance on How Selection of Annuity Providers Applies to Defined Contribution Pension Plans
Archived News Release — Caution: Information may be out of date.
Washington, DC - The U.S. Department of Labor’s Pension and Welfare Benefits Administration (PWBA) today issued an advisory opinion to clarify how the existing guidance on selection of annuity providers applies to defined contribution pension plans. The opinion will assist employers and plan fiduciaries with regard to their specific duties in offering annuities as a distribution option under such plans. The opinion states that fiduciaries may consider costs in evaluating competing annuity products. Lower costs often mean increased benefits for participants in defined contribution retirement plans. The opinion makes clear, however, that lower costs cannot justify the purchase of unsafe annuities. Advisory Opinion 2002-14A is available on PWBA’s Web site at www.dol.gov/pwba.
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Archived News Release — Caution: Information may be out of date.