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The questions in this section are based on respondents' answers to the question:
What options, if any, could policymakers consider that could encourage more annuitization of pension and retirement plan savings at retirement? What are the likely effects and tradeoffs associated with each of these options with respect to plan sponsors, participants, the pensions and investment community, and the federal government? Responses received for this question during Phase 1 include the items below. The items are listed in alphabetical order. |
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3.
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How effective, if at all, would each of the following options be in encouraging more annuitization of pension and retirement plan savings? |
| (Check one for each.) |
| Extremely effective | Very effective | Moderately effective | Somewhat effective | Slightly or not effective | No answer | ||
|---|---|---|---|---|---|---|---|
| 3a.
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Allow employer plans to distribute a certain amount of pension benefits as annuity income and the remainder with participant discretion | ||||||
| 3b.
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Allow plan sponsors or employers to form or join purchasing pools to offer annuities | ||||||
| 3c.
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Amend ERISA Investment Advisor rules to clarify that plan sponsors may provide information/education on managing income during retirement | ||||||
| 3d.
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Apply the same tax penalties for taking a lump sum at retirement as are applied for pre-retirement lump sum distributions | ||||||
| 3e.
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Change benefit portability rules/regulations | ||||||
| 3f.
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Develop more adequate annuity products (not a policy option per se) | ||||||
| 3g.
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Enable government to act as an insurer for commercial annuity providers (i.e., federal guaranty program) | ||||||
| Extremely effective | Very effective | Moderately effective | Somewhat effective | Slightly or not effective | No answer | ||
|---|---|---|---|---|---|---|---|
| 3h.
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Have PBGC or another government agency provide annuities to employers and/or employees (i.e., as a competitor to provide or sell annuities) | ||||||
| 3i.
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Increase information and education to participants/ retirees | ||||||
| 3j.
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Mandating pension/retirement saving plan benefits be paid as annuities (partial or full) | ||||||
| 3k.
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Mandating qualified DC plans offer an annuity as a default option of pension benefits (i.e., apply QJSA provisions) | ||||||
| 3l.
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Modify rules/regulations that currently apply when plans offer an annuity (e.g., limit QJSA provisions) | ||||||
| 3m.
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Provide tax incentives for employees who receive qualified annuity income (i.e., favorable tax treatment of annuity income) | ||||||
| 3n.
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Provide tax incentives for employers and/or insurance providers to provide annuities to retirees | ||||||
| Extremely effective | Very effective | Moderately effective | Somewhat effective | Slightly or not effective | No answer | ||
|---|---|---|---|---|---|---|---|
| 3o.
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Require all DC plans that don't normally pay out in the form of an annuity to roll out all lump sum distributions to a new type of IRA that pays benefits in the form of a J&S annuity | ||||||
| 3p.
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Require pension/retirement plans offering distributions in the from of an annuity to offer an inflation-indexed annuity option | ||||||
| 3q.
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Require pension/retirement plans that allow retirees to elect lump sums to also offer the option to annuitize some benefits at a later date | ||||||
| 3r.
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Require qualified DC plans to offer an annuity option | ||||||
| 3s.
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Set minimum standards for state insurance guaranty funds | ||||||
| 3t.
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Simplify various DB plan rules to level the playing field with DC plans | ||||||
| 3u.
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Other (Please describe below.) | ||||||
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If you checked "other" (above), please describe. (The textbox will expand to accommodate your response.) |
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