Treasury Dept. Rules Give Annuities a Boost

November 3, 2016 by John Hilton

New Department of Treasury rules could be a boon for annuities as an option within defined benefit plans.

The rules, announced in early September, simplify rules that allow retirees to simultaneously elect a partial lump sum and a partial annuity from a defined benefit pension plan.

Annuities are rarely offered in DB plans. Those plans that do include an annuity option see little participation, but experts say better regulatory clarity will likely contribute to increased interest.

“This rule will provide pension plan participants with more flexibility when given the option of a lump sum or an annuity,” said Cathy Weatherford, president and CEO of the Insured Retirement Institute.

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Originally Posted at InsuranceNewsNet on October 28, 2016 by John Hilton.