Messer Bill Would Help Working Americans Better Plan for Retirement

WASHINGTON (Thursday, April 6, 2017) — Rep. Luke Messer (IN-06) filed bipartisan legislation in the U.S. House today, alongside colleagues in the Senate, to help working Americans better plan for retirement.

The Lifetime Income Disclosure Act (LIDA) would require retirement plans, like 401(k)s, to regularly disclose the real-world benefit of savings. To reach this goal, each 401(k) statement would be required to include a person’s current savings and how those savings would translate into a monthly paycheck for life.

This information will help a consumer understand whether they are saving enough or need to save more. A recent Gallup poll found that 64 percent of Americans are worried about not having enough money for retirement.

“We all struggle to know how far our savings will stretch into retirement,” Messer said. “Seeing the value of a retirement account balance as a monthly income payment gives folks an idea of how much they will have for monthly expenses and whether they are saving enough today.”

The bill was introduced today by Messer and Rep. Mark Pocan (WI-02) in the House. Sen. Johnny Isakson (R-GA) and Sen. Chris Murphy (D-CT) introduced a companion bill in the Senate.

“This bill creates a straightforward tool to help workers with employer sponsored retirement plans determine if they are on track to meeting their retirement goals.” Pocan said. “Seeing how retirement savings translate into an expected monthly payment drives home the importance of saving early and often. I’m proud to join my colleagues in introducing this bipartisan bill to ensure Americans have better information to plan for retirement.”

“American workers need access to the best available information about their investment choices and exactly how much they will have earned when they retire,” said Isakson, chairman of the Senate labor subcommittee. “This information not only helps them to plan, but promotes increased savings while they are still working. Many workers count on defined contribution plans such as 401(k)s in their retirement planning, and this legislation will encourage participants to think of their 401(k) investments as a vehicle for lifetime income.”

“People across Connecticut are losing sleep over their inability to save for retirement. It’s a silent crisis in our state that not enough people are talking about,” Murphy said. “Senator Isakson and I introduced this bill to help families answer basic questions about how to save and how much to save. Our Lifetime Income Disclosure Act will help people make smarter, more informed decisions about whether or not they’re saving enough, and ensure that Connecticut families can retire with dignity.”

Several industry groups sent letters to Rep. Messer urging support for LIDA, including TIAA, the Insured Retirement Institute (IRI), the American Council of Life Insurers and the Women’s Institute for a Secure Retirement (WISER).

April 3-7 is National Retirement Planning Week.

Read this original document at: https://messer.house.gov/media-center/press-releases/messer-bill-would-help-working-americans-better-plan-for-retirement