With so much going on in the retirement plan arena, I nearly missed the subhead in Pensions & Investments article, Borzi strong on DC fee disclosure issue. (Free registration may be required).
“Borzi”, as those of us in the benefit business know, is Phyllis C. Borzi, just nominated by President Obama to be Assistant Secretary of Labor for the Employee Benefits Security Administration (EBSA). It’s the federal agency which has oversight over ERISA reporting, disclosure and fiduciary requirements.
The headline isn’t exactly breaking news. Fee disclosure – the word of art is transparency – has been and will continue to be a high priority for the Department of Labor.
The subhead that made me sit up was Annuities, DB concerns also on radar for nominee to lead EBSA (emphasis supplied). The article itself says that Ms. Borzi “also might require 401(k) plans to offer annuities to plan participants to help ensure they have an adequate income at retirement”.
It’s starting to happen, folks, the annuitization of 401(k) plans: new products being developed, distribution ramping up, and now what may be regulatory and even legislative mandates. And it may be sooner rather than later.