View Rule

View EO 12866 Meetings Printer-Friendly Version     Download RIN Data in XML

DOL/EBSA RIN: 1210-AC28 Publication ID: Fall 2024 
Title: ●Notice and Disclosure Requirements with Respect to Lump Sums 
Abstract:

This rulemaking would implement section 342 of SECURE 2.0, which amended part 1 of subtitle B of title I ERISA by adding a new section 113 that requires administrators of plans amended to provide a period of time during which a participant or beneficiary may elect to receive a lump sum to, among other things, provide participants and beneficiaries with advance notice of the opportunity to elect a lump sum payment in lieu of annuity payments for life from the pension plan. The disclosure under section 113 would provide participants and beneficiaries, as they consider what is best for their financial futures, with important information to compare the other distribution options available under the plan, such as monthly payments for life and the life of their spouses, and the lump sum. In addition to explaining the potential ramifications of accepting the lump sum, the disclosure also would explain how the lump sum was calculated, including whether the lump sum is based on the early retirement benefit and, for a terminated vested participant, the relative values of the lump sum, the single life annuity, and the qualified joint and survivor annuity. The disclosure would also have to provide details about the election period, and how to obtain additional information.  The statute requires the Department of Labor to issue a model notice that the plan administrator may use to satisfy this participant/beneficiary notice requirement.  Section 113 also requires the plan administrator to furnish to the Department of Labor and the Pension Benefit Guaranty Corporation a notice describing the lump sum offer at least 30 days prior to the start of the election period and file, no later than 90 days after the end of the election period, a post-offer report that includes the number of participants who accepted the offer and such other information the Department may require.

 
Agency: Department of Labor(DOL)  Priority: Other Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: Undetermined  Unfunded Mandates: Undetermined 
CFR Citation: Not Yet Determined     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: Section 342 of SECURE Act 2.0 of 2022, Division T Consolidated Appropriations Act, 2023 (Pub. L. 117-328)    Section 113 of the Employee Retirement Income Security Act of 1974    29 U.S.C. 1032   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  06/00/2025 
Regulatory Flexibility Analysis Required: Undetermined  Government Levels Affected: Undetermined 
Federalism: Undetermined 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Jeffrey J. Turner
Acting Director, Office of Regulations and Interpretations
Department of Labor
Employee Benefits Security Administration
N 5669, 200 Constitution Avenue NW, FP Building, Room N-5655,
Washington, DC 20210
Phone:202 693-8500