ERISA Advisory Council to Meet Again on QDIA Topic

The U.S. Department of Labor will convene the 2024 Advisory Council on Employee Welfare and Pension Benefit Plans, commonly known as the ERISA Advisory Council, on October 22. The meeting will be held online, open to the public and accessible via teleconference. 

The council will discuss recommendations to be made to the secretary of Labor regarding its two study topics for 2024: “Making Welfare Plan Claims and Appeals Procedures More Accessible to Participants” and “Lifetime Income and Qualified Defined Investment Alternatives.” 

The discussions are expected to focus on enhancing participants’ access to claims procedures and improving investment options that provide lifetime income, a solution growing in popularity. 

The ERISA Advisory Council is a 15-member panel appointed by the secretary of Labor, with members serving staggered three-year terms. The council includes representatives from various groups, such as employers, employees, the general public and employee benefits-related industries. The public is invited to attend the council’s meetings, including those in which the council discusses and votes on study topics.  

During its May meeting, the ERISA Advisory Council decided to prioritize issues related to welfare claims and appeals, as well as qualified default investment alternatives. The council unanimously agreed to further investigate QDIAs and to examine how to make claims and appeals procedures more accessible to participants. 

In a July hearing, the council advised that annuities should be included as a default investment option in defined contribution plans, providing a safeguard against longevity risk. The council also explored the growing potential to integrate lifetime income options into QDIAs to ensure greater financial security for retirees.