U.S. Sen. Chris Murphy reintroduces bill requiring retirement savings updates

U.S. Sen. Chris Murphy of Connecticut has teamed with Sen. Johnny Isakson, a Georgia Republican, to reintroduce legislation designed to ensure Americans do not outlive their retirement savings.

The Lifetime Income Disclosure Act, S.868, would require 401(k) plan sponsors to update participating workers about the projected monthly income they should expect at retirement based on the current account balance in their 401(k) plans. The legislation, which was previously introduced in the 114th Congress but was not brought to the Senate floor for a vote despite unanimously passing the Senate Finance Committee, is patterned after the annual statements sent by the Social Security Administration to working Americans that updated them of their estimated monthly benefits based on their current earnings.

Murphy noted that the bill is also based on studies that determined many Americans are not saving enough for retirement and are not clear on how to draw down their savings for their post-work years. “People across Connecticut are losing sleep over their inability to save for retirement,” he said. “It’s a silent crisis in our state that not enough people are talking about.”