Income

While an initial step, Senate bill 2832 could set the course for significant changes in the retirement income industry. The bill would amend the Employee Retirement Income Security Act (ERISA) which governs defined contribution plans such as the 401k . Plan sponsors would be required to provide plan participants with an annual statement that shows what the value of their retirement account would be in terms of guaranteed monthly payments--in other words, annuity payments . The bill is intended...

The Obama Administration continues to make annuities and other potential sources a guaranteed income a policy priority. As described in a recent Bloomberg article, much of the concern seems to be related to the retirement plan damage caused by the financial crisis. While recently recovered, average 401k balances took a major hit in 2008 and early 2009. Bloomberg reports that the U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the...

AXA Equitable Life Insurance Company has been an innovator in the variable annuity industry. The company was a pioneer in the area of guaranteed living benefits with the launch of the first guaranteed minimum income benefit . AXA has recently launched a new variable annuity product named "Retirement Cornerstone." Retirement Cornerstone features a "dual account platform" that provides the potential for long-term asset accumulation and growth as well as downside protection through a guaranteed...