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The questions in this section are based on respondents' answers to the question:
"What do you consider to be the top 5 factors in pensions and retirement affecting the payout options offered to retiring participants and/or elected by retirees?" Responses received for this question during Phase 1 include the items below. The items are listed in alphabetical order. When answering this question, please keep in mind that these factors may affect payout options offered to retiring participants, payout options elected by retiring participants, or both. |
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1.
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How great a factor, if at all, are each of the following trends in affecting payout options offered to retiring participants and/or elected by retirees. |
| (Check one for each.) |
| Major factor | Moderate factor | Minor factor | Not a factor | No answer | ||
|---|---|---|---|---|---|---|
| 1a.
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Adequacy of available annuity product types (i.e., variety, pricing, value of payments, lack of inflation protection, etc.) | |||||
| 1b.
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Amount of retirement/saving plan assets of future retirees | |||||
| 1c.
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Bequest motives | |||||
| 1d.
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Challenges to offering an annuity, such as administrative cost/burden, or compliance with applicable rules (including QJSA, PBGC premiums, etc.) | |||||
| 1e.
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Changes in plan design/features within plans | |||||
| 1f.
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Changes in the availability and/or election of various payout options | |||||
| 1g.
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Competitive pressures: attract workers, minimize/stabilize costs | |||||
| Major factor | Moderate factor | Minor factor | Not a factor | No answer | ||
|---|---|---|---|---|---|---|
| 1h.
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Concerns and trust issues about annuity providers and/or employers ability to provide annuity payments (i.e., solvency issues) | |||||
| 1i.
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Concerns of higher-income DB participants about potential loss of benefits as a result of PBGC guarantee limits | |||||
| 1j.
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Employee acceptance of the move from employer responsibility to employee responsibility | |||||
| 1k.
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Household decisions about retirement income | |||||
| 1l.
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Impact of laws and regulations on employer decisions (i.e., impact of ERISA or the tax code) | |||||
| 1m.
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Individuals believe they can do better managing the money than with an annuity | |||||
| 1n.
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Inertia-the real and/or perceived cost of changing the status quo in terms of options offered | |||||
| Major factor | Moderate factor | Minor factor | Not a factor | No answer | ||
|---|---|---|---|---|---|---|
| 1o.
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Lack of consumer knowledge/understanding about annuitization and/or key risks they will face in retirement | |||||
| 1p.
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Participants don't understand investments and/or how to invest their retirement savings | |||||
| 1q.
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Participants' expectations about needs in retirement (e.g., income, expenses, longevity) | |||||
| 1r.
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Participants' lack of understanding about the value of certain DB plan benefit features (e.g., early retirement subsidies) | |||||
| 1s.
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PBGC guarantees on qualified DB annuity payouts | |||||
| 1t.
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Preferences of owners/executives who start plans | |||||
| 1u.
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Retirees/employees don't have adequate information to make benefit elections | |||||
| Major factor | Moderate factor | Minor factor | Not a factor | No answer | ||
|---|---|---|---|---|---|---|
| 1v.
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The role of financial advisors | |||||
| 1w.
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The taxation of distributions from various types of retirement plan vehicles | |||||
| 1x.
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The value of lump sums from DB plans has increased | |||||
| 1y.
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Trends in types of employer sponsored plans | |||||
| 1z.
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Trends in workforce demographics and retirement | |||||
| 1aa.
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Widespread media, investment community, and employee focus on account balances | |||||
| 1ab.
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Worker preferences for the type of plan they want and /or how they receive benefits | |||||
| 1ac.
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Workers/retirees already have annuity income (i.e., from social security, from a DB plan, from a spouse's plan) | |||||
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