AllianceBernstein 401(k) Annuity Can Auto Enroll, DOL Says (1)

An AllianceBernstein LP lifetime income strategy program meets the US Labor Department’s requirements to automatically enroll new 401(k) participants, according to a new advisory opinion.

The DOL’s Employee Benefits Security Administration granted the global investment firm permission to treat the guaranteed income investment as a qualified default investment alternative. It insures participants against losses due to poor investment returns or longevity so that money can be withdrawn even when an account balance has been exhausted.

The opinion could pave the way for insurance products to become default investments in more workplace retirement plans. The insurance industry has been pressuring ...