SOURCE: Profit Sharing/401k Council of America

May 03, 2010 16:08 ET

PSCA Urges That the Departments of Labor and Treasury Not Mandate Plan Designs for Lifetime Income Products

CHICAGO, IL--(Marketwire - May 3, 2010) -  In its response to a joint Department of Labor and Department of the Treasury Request for Information Regarding Lifetime Income Options for Participants and Beneficiaries in Retirement Plans, the Profit Sharing/401k Council of America (PSCA) urged that the agencies permit the development of a new variety of retirement plan products and investments designed to provide guaranteed income and structured payments in retirement and not mandate or endorse any particular approach.

PSCA reiterated its long-held belief that the plan sponsor ability to design plans that meet the specific needs of their workforces and businesses is critical to the continual improvement of the employer provided retirement plan system. Accordingly, PSCA strongly urged the agencies to continue leaving the responsibility for plan design with sponsors and not require the offer of specific plan investments or distribution options.

"We need new solutions and the financial services industry is busy creating exciting and innovative products to meet the needs of today's retirees," noted PSCA President David Wray. "Government involvement now would be counterproductive."

PSCA's comment letter is available at www.psca.org.

About the Profit Sharing/401k Council of America
The Profit Sharing/401k Council of America (PSCA), a national non-profit association of 1,200 companies and their 6 million employees, advocates increased retirement security through profit sharing, 401(k) and related defined contribution programs to federal policymakers and makes practical assistance with profit sharing and 401(k) plan design, administration, investment, compliance and communication available to its members. PSCA, established in 1947, is based on the principle that "defined contribution partnership in the workplace fits today's reality." PSCA's services are tailored to meet the needs of both large and small companies with members ranging in size from Fortune 100 firms to small, entrepreneurial businesses.

Contact Information

  • Contact
    Profit Sharing/401k Council of America
    Edward Ferrigno
    VP Washington Affairs
    (202) 863-7272
    ferrigno@401k.org