Congress is considering two bills that would make it easier for plan sponsors to include annuities in their 401(k) plans, according to a Cerulli Associates report.
Only 8% of plan sponsors offer in-plan annuity purchase options, and only 2% assist their participants in purchasing annuities outside of their retirement plans, according to a Cerulli report released today.
One of the main hurdles for plan sponsors in providing such options has been their fears about their potential liability if participants suffer annuity losses, according to the report.
“The lack of clear legal and regulatory guidance on safely incorporating annuities into a 401(k) plan, either as an investment option during the accumulation phase or as an option to help retiring employees fund their retirement fosters this situation,” the report said.
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