Labor/Treasury proposal to provide retirement fund payouts as annuities

[Sharky]

Could this be another attempt to revive the "I" in FIRE? "Lifetime stream of income" arrangements are annuities, which are an insurance product. Or will they just tie it into Social Security, and use the money in the same way they use FICA payments (i.e. in the general fund)?

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From: http://www.dol.gov/federalregister/H...512&AgencyId=8

SUMMARY: The Department of Labor and the Department of the Treasury (the "Agencies") are currently reviewing the rules under the Employee Retirement Income Security Act (ERISA) and the plan qualification rules under the Internal Revenue Code (Code) to determine whether, and, if so, how, the Agencies could or should enhance, by regulation or otherwise, the retirement security of participants in employer-sponsored retirement plans and in individual retirement arrangements (IRAs) by facilitating access to, and use of, lifetime income or other arrangements designed to provide a lifetime stream of income after retirement. The purpose of this request for information is to solicit views, suggestions and comments from plan participants, employers and other plan sponsors, plan service providers, and members of the financial community, as well as the general public, on this important issue.

DATES: Comments must be submitted on or before May 3, 2010.

[marvenger]

Re: Labor/Treasury proposal to provide retirement fund payouts as annuities

I doubt these annuities will be infaltion adjusted. Didn't Greenspan say we guarantee cash payments but not purchasing power when it came to unfunded liabilies. Don't think the oligarchs will be willing to turn over their hard stolen purchasing power to retirees of the future, and this could be a good way to sucker in acceptance of what currently looks like a good deal but will by design be a shithouse one.