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Defined Contribution Plans Retirement Income Research Survey

Background and Purpose

Much has been written about the desire by plan participants to have their employers’ defined contribution plans, usually 401(k) plans, offer in-plan retirement income options. Surveys results indicate employers are either considering or in the process of offering in-plan income options. The SECURE Act included provisions designed to encourage employers to add insured retirement income options. However, little research covering the actual inclusion of income options within a plan or the utilization of said options (when available) has been undertaken. It is of value to determine the “actual” extent of the availability and use of retirement income within defined contribution plans through a survey. The following stakeholders would benefit from such research:

  1. Plan design consultants: When designing plans that will offer retirement income options, which types of options are generally best received by retirees.
  2. Plan investment consultants: How might plan investments be modified for the post accumulation stage of retirement to meet the needs and desires of retirees.
  3. Annuity providers: How popular are current products and how might new lifetime income products be designed to encourage adoption by employers and retirees.
  4. Recordkeepers: Which types of retirement income options should be available in their administration systems.
  5. Employers: What are the types of retirement income that retirees are interested in receiving from 401(k) plans.
  6. Policymakers: A resource for informing on the current state of the availability and use of retirement income within defined contribution plans.

Once an initial survey is completed in this area, it may be of value to periodically update it to assess whether the landscape has changed.

Research Objective

The Society of Actuaries Research Institute is seeking researchers to collect information through a survey on the availability of in-plan income options from a representative sample of employer plans. There are hundreds of thousands of 401(k) plans in existence and thus only a small percentage sample could be potentially surveyed.

The selected researcher should possess knowledge on the topic and access to potential sources of data required for the survey.

The following list of sample survey questions is provided as an illustrative example of desired data. As part of the project, researchers should review this list and consider edits/additional questions that may benefit the survey.

Sample Questions/Data

For all plans surveyed:

  • a. Count of plan participants, total and retired
  • b. Sum of plan assets, total and retired
  • c. Whether the plan offers any in-plan income options
  • d. Industry
  • e. Region

For those plans that do offer retirement income options:

  • 1. What specific option(s) are offered. Possibilities include:
    • a. Fixed Income Annuity
    • b. Variable Annuity with Guaranteed Income Rider
    • c. Fixed Index Annuity with Guaranteed Income Rider
    • d. Target date fund with embedded annuity
    • e. Noninsured payout (must specify how determined)
    • f. Others: Provide descriptions
    •  
  • 2. What was the primary motivation for adding the retirement income option:
    • a. Participant demand
    • b. Improving value of the plan to employees
    • c. Reducing leakage
    •  
  • 3. The following information for each retiree during the prior 12 months:
    • a. Total account balance
    • b. Whether an in-plan option has been selected (Y/N)
    • c. If an option has been selected, which one and with how much of the account balance. Where plans have multiple options, details of each.
    •  

For those plans that do not offer retirement income options; which of the following contributed to that decision?

  • a. Fiduciary Concern
  • b. Record Keeper cannot provide servicing
  • c. Additional Cost
  • d. Participants not Interested
  • e. Other (specify)

Proposal Requirements

To facilitate the evaluation of proposals, the following information should be submitted:

  1. Resumes of the researcher(s), including any graduate student(s) expected to participate, indicating how their background, education and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
  2. An outline of the approach to be used (e.g. literature search, model, etc.), emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, and possible limitations of the analysis.
  3. A description of the expected deliverables and any supporting data, tools or other resources to be used.
  4. Cost estimates for the research, including computer time, salaries, report preparation, material costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
    As a guide for developing project budgets, please review the Historical Project Cost Guide (see Appendix).
    Please note that as a policy, the SOA Research Institute generally does not provide funding to cover academic institution overhead expenses.
  5. A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions. The SOA is interested in completing this project in a timely manner. Suggestions in the proposal for ensuring timely delivery, such as fee adjustments, are encouraged.
  6. Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.

Selection Process

The SOA will appoint a Project Oversight Group (POG) to oversee the project. The POG is responsible for recommending to the Section Research Committee the proposal to be funded, if any. Input from other knowledgeable individuals also may be sought, but the Section Research Committee will make the final recommendation, subject to Society of Actuaries Research Institute (SOA) leadership approval. An SOA staff research actuary will provide staff actuarial support.

Questions

Any questions regarding this RFP should be directed to research@soa.org with the subject line Defined Contribution Plans Retirement Income Research Survey.

Notification of Intent to Submit Proposal

If you intend to submit a proposal, please email written notification by September 15, 2025 to research@soa.org with the subject line Defined Contribution Plans Retirement Income Research Survey.

Submission of Proposal

Please email your proposal to research@soa.org with the subject line Defined Contribution Plans Retirement Income Research Survey; proposals must be received no later than October 1, 2025. It is anticipated that all proposers will be informed of the status of their proposal by the end of October 2025.

Conditions

The selection of a proposal is conditioned upon and not considered final until a Letter of Agreement is executed by both the Society of Actuaries Research Institute and the researcher.

The Society of Actuaries Research Institute reserves the right to not award a contract for this research. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available. The Society of Actuaries Research Institute also reserves the right to redirect the project as is deemed advisable.

The Society of Actuaries Research Institute plans to hold the copyright to the research and to publish the results with appropriate credit given to the researcher(s).

The Society of Actuaries Research Institute may choose to seek public exposure or media attention for the research. By submitting a proposal, you agree to cooperate with the Society of Actuaries in publicizing or promoting the research and responding to media requests.

The Society of Actuaries may also choose to market and promote the research to members, candidates and other interested parties. You agree to perform promotional communication requested by the Society of Actuaries, which may include, but is not limited to, leading a webcast on the research, presenting the research at an SOA meeting, and/or writing an article on the research for an SOA newsletter.

Conflict of Interest

You agree to disclose any of your material business, financial and organizational interests and affiliations which are or may be construed to be reasonably related to the interest, activities and programs of the Society of Actuaries or the Society of Actuaries Research Institute.

Appendix

The cost ranges below are intended as a guide for budgeting project costs for proposals in response to SOA Research Institute Request for Proposals (RFP). Please note these figures span the 33rd to 66th percentiles for all projects as well as projects that involve a specific approach (lit review, survey, etc.). They are based on historical costs over several recent years. Expected costs for some RFPs may fall outside these ranges depending on the nature of the work and resources required for completion.

All Contracted Projects

This category includes all contracted projects that the Institute has undertaken within the last several years. The 33rd – 66th percentile project costs range is $25,000 – $50,000.

Literature Reviews

This category includes projects that involved only a literature review or the cost for the portion of a larger project that included a literature review. The 33rd – 66th percentile project costs range is $15,000 – $20,000.

Surveys

This category includes all projects that had a survey as their primary component. The 33rd-66th percentile project costs range is $28,000 – $55,000.