Today, Rep. Donald Norcross (D-NJ), member of the House Committee on Education and Labor’s Health, Employment, Labor, and Pensions Subcommittee, reintroduced the Lifetime Income For Employees (LIFE) Act of 2023 today.

The legislation would allow annuities to be a default in employer-provided 401(k) plans to deliver employees with a steady, guaranteed income during retirement.

“Unfortunately, many Americans feel that retirement is out of reach, including young people who are just beginning their careers,” Rep. Norcross said. “As a retired electrician, I know first-hand how important pensions are to workers who rely on them for their retirement. That’s why I am introducing the LIFE Act, to provide hard-working Americans with a guaranteed income and financial security so they can retire with dignity.”

The LIFE Act would direct the Secretary of Labor to amend the current Qualified Default Investment Alternative (QDIA) safe harbor regulations to allow (but not require) a QDIA to include as part of its mix of asset classes an “annuity fixed income component” which provides a guaranteed return on investments and the option to convert assets into a guaranteed lifetime income stream.

A steady drumbeat of studies and analyses paints a dire picture for the retirement of many Americans. Demographics play a large role, as baby boomers retire and people live longer – increasing the number of people and number of years individuals will rely on retirement benefits. The LIFE Act is bolstered by research and analysis that promotes annuities as a policy solution to the looming retirement crisis facing American workers.