Defined terms for the annuity market and lifetime income landscape.
Safe harbor annuity selection is the fiduciary process established by ERISA Section 404(e), as added by the SECURE Act, that — when followed — provides plan fiduciaries with statutory protection in selecting an insurance carrier to provide an in-plan lifetime income option.
The SECURE 2.0 Act lifetime income provisions are the elements of the SECURE 2.0 Act of 2022 that extended the lifetime income framework of the original SECURE Act, including expanded QLAC treatment, enhanced portability rules, and modifications to required minimum distribution mechanics.
The SECURE Act lifetime income provisions are the elements of the 2019 Setting Every Community Up for Retirement Enhancement Act addressing lifetime income in defined contribution plans, including the fiduciary safe harbor for annuity selection, portability, and lifetime income disclosure.
A stable value fund is a defined contribution plan investment vehicle that seeks to preserve principal and produce steady returns by holding a portfolio of high-quality fixed-income securities together with wrap contracts issued by insurance companies or banks that support book-value accounting.
A summary plan description is the participant-facing document that explains a retirement plan's terms in language calculated to be understood by the average participant, required by the Employee Retirement Income Security Act to be furnished to every participant and beneficiary.
