EBSAFinal Rule

Selection of Annuity Providers-Safe Harbor for Individual Account Plans; Withdrawal

Finance & BankingLabor & Workplace

Summary

This regulation creates new protections for retirement plan administrators when they select companies to provide annuities (guaranteed income payments in retirement) to workers. It aims to reduce legal liability for plan managers who follow certain safe practices, making it easier for retirement plans to offer annuity options to employees.

Key Points

  • 1Establishes a 'safe harbor' that protects retirement plan administrators from lawsuits if they follow specific rules when choosing annuity providers
  • 2Applies to individual account plans like 401(k)s and similar retirement savings accounts where workers have their own accounts
  • 3Requires plan administrators to evaluate annuity providers based on reasonable criteria and document their selection process
  • 4Allows the federal government to withdraw or change these protections if they prove to be problematic
  • 5Encourages more retirement plans to offer annuity options since administrators have clearer legal protections

Key Dates

Published

August 12, 2025

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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