Robin Schachter Quoted by Plan Sponsor on New Annuity Safe-Harbor Regulations
Akin Gump employee benefits partner Robin Schachter has been quoted by Plan Sponsor magazine regarding a new Labor Department bulletin that provides new guidance on annuity safe-harbor regulations for defined contribution plans.
In the article “Clarification on Annuities,” Schachter said the bulletin was one of the Obama administration’s goals to provide “income security for retirement plan participants. With more people today dependent on defined contribution (DC) plans, the DOL wants to make it easier for sponsors to offer annuities.”
The article suggests that sponsors should be sure to look at the ratings of insurance companies when they are updated each quarter. Schachter added, however, that because monitoring insurance companies is technical, it makes the most sense for sponsors to turn to outside investment managers or consultants to do the quarterly reviews. “They should be reviewing the financial rating and status of the insurance companies,” he said.