![]() ![]() An explanation of how the lump sum was calculated.A comparison of benefits offered under the plan and the buyout offer.The INFORM Act would require plan sponsors to send a notice to retirees and participants 90 days before the period in which they must make a decision about the offer. As one recent report found, one in three who took lump-sum buyouts from their retirement accounts depleted them within just five years. Buyouts also leave people on their own to manage the challenge of making these assets last as long as they are needed. Pension plan sponsors typically offer buyouts to reduce their corporate liabilities-but the buyouts transfer all risk from employers to retirees and, on average, leave them with less money than they would receive if they had kept their lifetime retirement plan. Lump-sum buyouts allow pension plans to make a one-time payment to retirees and participants-in lieu of the lifetime payments to which they would otherwise be entitled. “Americans should know as much as possible when planning for retirement.” “Retirees should have all the information they need to make critical decisions about their financial security,” said Senator Cassidy. The legislation has also been cosponsored by Senator Dr. “Our legislation will ensure that retirees are aware of the trade-offs involved in one-time pension buyouts so they can make informed decisions to protect their financial future and enjoy their hard earned retirement.” ![]() “Wisconsin retirees and their families deserve the pensions they have worked towards, planned for, and depend on,” said Senator Baldwin. “This commonsense bill would ensure hardworking Americans are given that clear information they need to make informed decisions about their financial future.” “After putting in a lifetime of work, retirees deserve to understand how a lump-sum buyout of their hard-earned pensions could impact their retirement plans,” said Senator Smith. “After working for decades to earn a retirement, people deserve to have better information about how a lump-sum buyout of their lifetime pension could undermine their financial future-and my commonsense bill will make sure they have that information so they can make an informed decision.” “No one’s retirement planning should be put at risk because they didn’t have the information they needed before making a big decision about whether to trade their lifetime pension payments for a one-time buyout,” said Senator Murray. ![]() Senator Patty Murray (D-WA), Chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, Senator Tina Smith (D-MN), and Tammy Baldwin (D-WI) reintroduced the Information Needed for Financial Options Risk Mitigation (INFORM) Act of 2022, which would require pension plan sponsors to provide retirees and participants with critical information about the trade-offs involved when they offer a lump-sum buyout of their lifetime retirement plans and protect families’ savings. Senator Murray: “After working for decades to earn a retirement, people deserve to have better information about how a lump-sum buyout of their lifetime pension could undermine their financial future-and my commonsense bill will make sure they have that information so they can make an informed decision.”
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