Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Lifetime Income Disclosure Act''.

SEC. 2. DISCLOSURE REGARDING LIFETIME INCOME.

(a) In General.--Subparagraph (B) of section 105(a)(2) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)(2))
is amended--
(1) in clause (i), by striking ''and'' at the end;
(2) in clause (ii), by striking ''diversification.'' and
inserting ''diversification, and''; and
(3) by inserting at the end the following:
''(iii) the lifetime income disclosure
described in subparagraph (D)(i).
In the case of pension benefit statements described in
clause (i) of paragraph (1)(A), a lifetime income
disclosure under clause (iii) of this subparagraph
shall only be required to be included in one pension
benefit statement in each calendar year.''.
(b) Lifetime Income.--Paragraph (2) of section 105(a) of such Act
(29 U.S.C. 1025(a)) is amended by adding at the end the following new
subparagraph:
''(D) Lifetime income disclosure.--
''(i) In general.--
''(I) Disclosure.--A lifetime
income disclosure shall set forth the
annuity equivalent of the total
benefits accrued with respect to the
participant or beneficiary.
''(II) Annuity equivalent of the
total benefits accrued.--For purposes
of this subparagraph, the 'annuity
equivalent of the total benefits
accrued' means the amount of monthly
payments the participant or beneficiary
would receive at the plan's normal
retirement age if the total accrued
benefits of such participant or
beneficiary were used on the date of
the lifetime income disclosure to
purchase the life annuities described
in subclause (III), with payments under
such annuities commencing at the plan's
normal retirement age.
''(III) Life annuities.--The life
annuities described in this subclause
are a qualified joint and survivor
annuity (as defined in section 205(d)),
based on assumptions specified in rules
prescribed by the Secretary, including
the assumption that the participant or
beneficiary has a spouse of equal age,
and a single life annuity. Such
annuities may have a term certain or
other features to the extent permitted
under rules prescribed by the
Secretary.
''(ii) Model disclosure.--Not later than 1
year after the date of the enactment of the
Lifetime Income Disclosure Act, the Secretary
shall issue a model lifetime income disclosure,
written in a manner so as to be understood by
the average plan participant, that--
''(I) explains that the annuity
equivalent is only provided as an
illustration;
''(II) explains that the actual
annuity payments that may be purchased
with the total benefits accrued will
depend on numerous factors and may vary
substantially from the annuity
equivalent in the disclosures;
''(III) explains the assumptions
upon which the annuity equivalent was
determined; and
''(IV) provides such other similar
explanations as the Secretary considers
appropriate.
''(iii) Assumptions and rules.--Not later
than 1 year after the date of the enactment of
the Lifetime Income Disclosure Act, the
Secretary shall--
''(I) prescribe assumptions that
administrators of individual account
plans may use in converting total
accrued benefits into annuity
equivalents for purposes of this
subparagraph; and
''(II) issue interim final rules
under clause (i).
In prescribing assumptions under subclause (I),
the Secretary may prescribe a single set of
specific assumptions (in which case the
Secretary may issue tables or factors that
facilitate such conversions), or ranges of
permissible assumptions. To the extent that an
accrued benefit is or may be invested in an
annuity contract, the assumptions prescribed
under subclause (I) shall, to the extent
appropriate, permit administrators of
individual account plans to use the amounts
payable under such contract as an annuity
equivalent.
''(iv) Limitation on liability.--No plan
fiduciary, plan sponsor, or other person shall
have any liability under this title solely by
reason of the provision of annuity equivalents
which are derived in accordance with the
assumptions and rules described in clause (iii)
and which include the explanations contained in
the model lifetime income disclosure described
in clause (ii). This clause shall apply without
regard to whether the provision of such annuity
equivalent is required by subparagraph
(B)(iii).
''(v) Effective date.--The requirement in
subparagraph (B)(iii) shall apply to pension
benefit statements furnished more than 12
months after the latest of the issuance by the
Secretary of--
''(I) interim final rules under
clause (i);
''(II) the model disclosure under
clause (ii); or
''(III) the assumptions under
clause (iii).''.
Student:
Lifetime Income Disclosure Act - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to require the quarterly pension benefit statement furnished to a participant or beneficiary with the right to direct the investment of assets in his or her account under an individual account plan to include a lifetime income disclosure at least once every calendar year.

Requires such a lifetime income disclosure to set forth the annuity equivalent of the participant's or beneficiary's total benefits accrued. Defines an annuity equivalent of the total benefits accrued as the monthly annuity payment the participant or beneficiary would receive at the plan's normal retirement age if those total accrued benefits were used on the date of the lifetime income disclosure to purchase certain qualified joint and survivor life annuities whose annuity payments would commence at the plan's normal retirement age.

Directs the Secretary of Labor to: (1) issue a model lifetime income disclosure, written in a manner which can be understood by the average plan participant; and (2) prescribe assumptions that plan administrators may use in converting total accrued benefits into annuity equivalents.

Declares that no plan fiduciary, plan sponsor, or other person shall have any liability under ERISA solely by reason of the provision of annuity equivalents derived in accordance with such assumptions and related rules and including explanations contained in the model lifetime income disclosure.