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Washington, DC - The U.S. Department of
Labor’s Pension and Welfare Benefits Administration (PWBA) today issued
an advisory opinion to clarify how the existing guidance on selection of
annuity providers applies to defined contribution pension plans. The
opinion will assist employers and plan fiduciaries with regard to their
specific duties in offering annuities as a distribution option under such
plans. The opinion states that fiduciaries may consider costs in
evaluating competing annuity products. Lower costs often mean increased
benefits for participants in defined contribution retirement plans. The
opinion makes clear, however, that lower costs cannot justify the purchase
of unsafe annuities. Advisory Opinion 2002-14A is available on PWBA’s
Web site at www.dol.gov/pwba. |
