I 

117TH CONGRESS 

2D SESSION H. R. 6746 

To amend the Employee Retirement Income Security Act of 1974 to permit 

default investment arrangements in annuities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 15, 2022 

Mr. NORCROSS (for himself and Mr. WALBERG) introduced the following bill; 

which was referred to the Committee on Education and Labor 

A BILL 

To amend the Employee Retirement Income Security Act 

of 1974 to permit default investment arrangements in 

annuities, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Lifetime Income For 

5 Employees Act’’. 

6 SEC. 2. DEFAULT INVESTMENT IN ANNUITY CONTRACTS. 

7 (a) IN GENERAL.—Section 404(c)(5) of the Em8 ployee Retirement Income Security Act of 1974 (29 

9 U.S.C. 1104(c)(5)) is amended— 

10 (1) in subparagraph (A)— 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•HR 6746 IH

1 (A) by inserting ‘‘or subparagraph (C), as 

2 appropriate,’’ after ‘‘subparagraph (B)’’; and 

3 (B) by inserting ‘‘or in a covered annuity 

4 contract.’’ after ‘‘by the Secretary’’; and 

5 (2) by adding at the end the following: 

6 ‘‘(C) COVERED ANNUITY CONTRACT.— 

7 ‘‘(i) IN GENERAL.—For purposes of 

8 this paragraph, the term ‘covered annuity 

9 contract’ means an investment in an annu10 ity contract that meets the following re11 quirements: 

12 ‘‘(I) The annuity contract does 

13 not impose a liquidity restriction on 

14 the transfer of invested amounts dur15 ing the 180-day period beginning on 

16 the date of the initial investment in 

17 such contract by the participant or 

18 beneficiary. 

19 ‘‘(II) The fiduciary ensures that 

20 each participant or beneficiary is pro21 vided notice in writing in accordance 

22 with clause (ii). 

23 ‘‘(III) The fiduciary allocates not 

24 more than 50 percent of any periodic 

25 contribution or, immediately after a 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•HR 6746 IH

1 rebalancing of account investments, 

2 50 percent of the value of the assets 

3 of the account, to the annuity con4 tract (or, as applicable, to the portion 

5 thereof to which a liquidity restriction 

6 applies after the 180-day period in 

7 subclause (I)). 

8 ‘‘(ii) NOTICE REQUIREMENT.—For 

9 the purposes of this subparagraph, each 

10 participant or beneficiary shall be provided 

11 notice in writing in a manner that is rea12 sonably designed to be understood by the 

13 average plan participant, as follows: 

14 ‘‘(I) Not later than 30 days in 

15 advance of the initial investment, a 

16 notice that includes— 

17 ‘‘(aa) an explanation of the 

18 circumstances under which assets 

19 in the account may be invested 

20 on behalf of the participant or 

21 beneficiary in the annuity con22 tract, including an explanation of 

23 the targeted range and maximum 

24 amount or percentage of such as25 sets to be invested; 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•HR 6746 IH

1 ‘‘(bb) an explanation of the 

2 rights, and any limitations or re3 strictions thereon, of a partici4 pant or beneficiary to direct or 

5 transfer amounts invested, or to 

6 be invested, in an annuity con7 tract to other investment alter8 natives available under the plan; 

9 ‘‘(cc) a general description 

10 of the annuity contract, including 

11 the duration of guaranteed pay12 ments and identification of the 

13 insurer; 

14 ‘‘(dd) an explanation of how 

15 a participant or beneficiary may 

16 obtain additional information in 

17 writing about their investment al18 ternatives; and 

19 ‘‘(ee) a description of how to 

20 obtain a copy of the annuity con21 tract. 

22 ‘‘(II) Not later than 30 days be23 fore the date of the imposition of a li24 quidity restriction described in sub25 clause (i)(I), that includes— 


pamtmann on DSKBC07HB2PROD with BILLS
5 

•HR 6746 IH

1 ‘‘(aa) a statement explaining 

2 that the participant’s or bene3 ficiaries’ contributions will short4 ly become subject to liquidity re5 strictions; 

6 ‘‘(bb) an explanation of the 

7 rights of the participant or bene8 ficiary to direct or transfer 

9 amounts to be invested in alter10 natives under the plan; and 

11 ‘‘(cc) an explanation of how 

12 a participant or beneficiary may 

13 obtain additional information 

14 about their investment alter15 natives. 

16 ‘‘(iii) DEFINITION OF ANNUITY CON17 TRACT.—For purposes of this subpara18 graph, the term ‘annuity contract’ means a 

19 contract (or provision or feature thereof) 

20 that— 

21 ‘‘(I) is issued by an insurer quali22 fied to do business in a State; and 

23 ‘‘(II) provides for the payment of 

24 guaranteed benefits annually (or more 

25 frequently) for a fixed term or for the 


pamtmann on DSKBC07HB2PROD with BILLS
6 

•HR 6746 IH

1 remainder of the life of the partici2 pant or beneficiary or the joint lives 

3 of the participant and the partici4 pant’s designated beneficiary.’’. 

5 (b) EFFECTIVE DATE.—The amendments made by 

6 subsection (a) shall apply with respect to investments 

7 made on or after the date of enactment of this Act. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS