Regulatory roundup

More retirement-related regulatory news for plan sponsors, including links to detailed information.

BLS publishes chart on lump-sum distributions related to DC plans
The U.S. Bureau of Labor Statistics (BLS) has published a new chart highlighting the most common payment option for participants in defined contribution (DC) retirement plans. According to the BLS, “As workers approach retirement, they might wonder how their retirement savings will be paid out. Among private industry workers in defined contribution plans in 2017, most participated in savings and thrift plans (73 percent). Other common plan types include deferred profit sharing (25 percent) and money purchase pensions (18 percent). A lump sum was the most common payment option available to workers in these plans. A lump sum provides retiring workers the full amount of their retirement savings and earnings with no further benefits received from the plan.”

To learn more, click here.

Final rule aimed at improving investors’ experience issued by SEC
The U.S. Securities and Exchange Commission (SEC) issued a final rule aimed at improving investors’ experience when investing in mutual funds, exchange-traded funds (ETFs), and other investment vehicles. The rule permits asset managers to deliver shareholder reports by making them publicly accessible on a free website and sending investors a paper notice of each report’s availability via mail. If an investor prefers to continue receiving shareholder reports by mail, they may do so. The new rule goes into effect January 21, 2021.

To learn more about the final rule, click here.

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