I 
118TH CONGRESS 
1ST SESSION H. R. 3942 
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 
JUNE 9, 2023 
Mr. NORCROSS (for himself and Mr. WALBERG) introduced the following bill; 
which was referred to the Committee on Education and the Workforce 
A BILL 
To amend the Employee Retirement Income Security Act 
of 1974 to permit default investment arrangements in 
annuities, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Lifetime Income For 
Employees Act’’. 
SEC. 2. DEFAULT INVESTMENT IN ANNUITY CONTRACTS. 
(a) IN GENERAL.—Section 404(c)(5) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1104(c)(5)) is amended— 
(1) in subparagraph (A)— 
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(A) by inserting ‘‘or subparagraph (C), as 
appropriate,’’ after ‘‘subparagraph (B)’’; and 
(B) by inserting ‘‘or in a covered annuity 
contract’’ after ‘‘by the Secretary’’; and 
(2) by adding at the end the following: 
‘‘(C) COVERED ANNUITY CONTRACT.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘covered annuity 
contract’ means an investment in an annu-
ity contract that meets the following re-
quirements: 
‘‘(I) The annuity contract does 
not impose a liquidity restriction on 
the transfer of invested amounts dur-
ing the 180-day period beginning on 
the date of the initial investment in 
such contract by the participant or 
beneficiary. 
‘‘(II) The fiduciary ensures that 
each participant or beneficiary is pro-
vided notice in writing in accordance 
with clause (ii). 
‘‘(III) The fiduciary allocates not 
more than 50 percent of any periodic 
contribution or, immediately after a 
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rebalancing of account investments, 
50 percent of the value of the assets 
of the account, to the annuity con-
tract (or, as applicable, to the portion 
thereof to which a liquidity restriction 
applies after the 180-day period in 
subclause (I)). 
‘‘(ii) 
NOTICE
REQUIREMENT.—For 
the purposes of this subparagraph, each 
participant or beneficiary shall be provided 
notice in writing in a manner that is rea-
sonably designed to be understood by the 
average plan participant, as follows: 
‘‘(I) Not later than 30 days in 
advance of the initial investment, a 
notice that includes— 
‘‘(aa) an explanation of the 
circumstances under which assets 
in the account may be invested 
on behalf of the participant or 
beneficiary in the annuity con-
tract, including an explanation of 
the targeted range and maximum 
amount or percentage of such as-
sets to be invested; 
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‘‘(bb) an explanation of the 
rights, and any limitations or re-
strictions thereon, of a partici-
pant or beneficiary to direct or 
transfer amounts invested, or to 
be invested, in an annuity con-
tract to other investment alter-
natives available under the plan; 
‘‘(cc) a general description 
of the annuity contract, including 
the duration of guaranteed pay-
ments and identification of the 
insurer; 
‘‘(dd) an explanation of how 
a participant or beneficiary may 
obtain additional information in 
writing about their investment al-
ternatives; and 
‘‘(ee) a description of how to 
obtain a copy of the annuity con-
tract. 
‘‘(II) Not later than 30 days be-
fore the date of the imposition of a li-
quidity restriction described in sub-
clause (i)(I), that includes— 
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‘‘(aa) a statement explaining 
that the participant’s or bene-
ficiaries’ contributions will short-
ly become subject to liquidity re-
strictions; 
‘‘(bb) an explanation of the 
rights of the participant or bene-
ficiary to direct or transfer 
amounts to be invested in alter-
natives under the plan; and 
‘‘(cc) an explanation of how 
a participant or beneficiary may 
obtain 
additional 
information 
about their investment alter-
natives. 
‘‘(iii) DEFINITION OF ANNUITY CON-
TRACT.—For purposes of this subpara-
graph, the term ‘annuity contract’ means a 
contract (or provision or feature thereof) 
that— 
‘‘(I) is issued by an insurer quali-
fied to do business in a State; and 
‘‘(II) provides for the payment of 
guaranteed benefits annually (or more 
frequently) for a fixed term or for the 
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