Benefits and executive compensation senior counsel Bruce Ashton contributed to an Institutional Retirement Income Council (IRIC) paper, which serves as a plan sponsor’s guide to retirement income, settlor functions and fiduciary considerations when adding income solutions within defined contribution (DC) plans.
First, the authors explore the impact of the SECURE Act, including how to best use the provisions of the law to create a more effective retirement plan. They also offer a way to approach decisions regarding the selection and addition of one or more of the retirement income solutions available within the DC industry and describe fiduciary decision-making criteria.
Additionally, the paper compares several types of annuity products available in DC plans on the market today. The authors discuss part of the fiduciary review process involving a requirement to review and understand the benefits, features and costs of the annuity contract being considered.
Overall, the authors provide plan sponsors with a foundation from which to approach the fulfillment of fiduciary duties and confidently select an appropriate product to add as a retirement income solution to their plans.