According to AnnuityAdvantage, by codifying longevity annuity contracts in the federal tax regulations, the
"Having additional regulatory guidance in this arena would make it both easier and simpler to implement these solutions in qualified plans," the DCIIA noted. "Such guidance can take many different forms, such as … interpretive guidance or information letters supporting different approaches or examples, without necessarily needing to rely on simplistic safe harbors that can have the unintended consequence of inhibiting innovation by creating fear that other potentially better approaches may be inherently 'unsafe' from a fiduciary perspective."
The association calls on the defined contribution community-sponsors, consultants, Employee Retirement Income Security Act (ERISA) counsel, recordkeepers, investment managers, providers and insurance companies-to embrace the message behind these new regulations and to move toward more widespread adoption of additional tools for participants.
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