From: Michael Litschewski [mailto:litscmj@hotmail.com] 

Sent: Saturday, February 27, 2010 12:39 PM 

To: EBSA, E-ORI - EBSA 

Subject: RFI - Life time income option

Well I've read all public comments currently posted on your website. The overall majority 

echo my sentiments... keep your hands of my money! 

 

This is just another socialist, redistribution of wealth and attempt to pay for a huge deficit by 

going after a huge pile of money. The government has already proven that it can't resist such 

temptation when they started borrowing from Social Security and writing IOU's. 

 

This is obviously a back door attemp at instituting parts of the Teresa Ghilarducci plan. She's 

just another left leaning liberal who can't stand to see people succeeding on their own without 

government help and believes we are too stupid to do so. And if we do, we should be forced 

to share it with others. 

 

You want a huge social uprising...keep pushing forward with this idiotic idea! But then you 

probably will since the government is too stupid to learn from the overwhelming poll numbers 

on the Health care issue. There is a growing distrust of the government because they have 

proven they don't listen to the people and have forgotten this is a country of majority rule, not 

rule by arrogant, elected officials. 

 

Remember is "We the People", Not "We the elected/appointed government officials" 

 

1. From the standpoint of plan participants, what are the advantages and disadvantages for 

participants of receiving some or all of their benefits in the form of lifetime payments 

 

Answer: 1) I can invest and get a higher return than what any of these plans offer. 

2) The fees are too high, the returns too low and the money is frozen. 3)Life time 

payments may be an advantage, but they come at too high a cost. 3)They 

(annuities) are often structured so the principle amount becomes the property of the 

life insurance co on death of the "owner" leaving nothing to the surviors or spouse. 

So for a married couple one person gets lifetime income the second gets 

shafted...bad.

 

2. What explains the low usage rate of lifetime income arrangements? Is it the result of a 

market failure or other 

factors 

 

See answers to number 1 above

 

3. Are there steps that the Agencies could or should take to overcome at least some of the 

concerns that keep plan participants from 

requesting or electing lifetime income. 

 

They'd have to be totally restructed and part of that would have to allow them to be 

liquid so they could be moved to different plans with higher returns or back into 

bonds or equities without high fees or penalties. And any participation would have 

to be totally optional with iron clad guarentees that it would never become 

mandatory.

 

4. What types of lifetime income are currently available to participants directly from plans (inplan options), such as payments 

from trust assets held under a defined benefit plan and annuity payments from insurance 

contracts held under a defined contribution or 

defined benefit plan. 

 
My 401K can be rolled into a annutity if I was that stupid. My cash benefit plan 

offers lump sum or an annuitity..again I'm not that stupid.

 

 5. To what extent are 401(k) and other defined contribution plan sponsors using employer 

matching contributions or employer nonelective 

contributions to fund lifetime income? 

 

 Not in my plan 

 

To what extent are participants offered a choice regarding such use of employer contributions, 

including by default or otherwise? 

 

My Plan is fully flexible (401K) and I can move the funds (my and employers) 

amoung different investment options.

 

 To what extent are these or other behavioral strategies being used or viewed as promising 

means of encouraging more lifetime 

income? Can or should the 401(k) rules, other plan qualification rules, or ERISA rules be 

modified, or their application clarified, to facilitate the use of behavioral strategies in this 

context? 

 

You can use all the behavioral strategies you want, I will never use the "Life time 

income options" 

 

 12. How should participants determine what portion (if any) of their account balance to 

annuitize? Should that portion be based on 

basic or necessary expenses in retirement? 

 

That is and should remain a personal choice and not something the government 

should be involved in. You want to provide a written guide for educational purposes, 

fine, but no mandates.

 

13. Should some form of lifetime income distribution option be required for defined 

contribution plans (in addition to money purchase 

pension plans)? If so, should that option be the default distribution option, and should it apply 

to the entire account balance? To what extent would such a requirement encourage or 

discourage plan sponsorship? 

 

Absolutely not, absolutely not, and absolutely not. Keep your hands of my money 

and how I chose to invest it.

 

You guys are trying to invent a problem where none exists. Life income options 

aren't used because they are bad investment vehicles for the vast majority of 

individuals. The market place has already ruled on this issue.

Mike Litschewski