Page 140

House Bill No. 5506

Public Act No. 22-118 140 of 739

prescribed by the [authority] Comptroller, provided the [authority] Comptroller determines such features to be feasible and cost effective: (1) A lifetime income investment option intended to provide participants with a source of retirement income for life. Any lifetime income investment for the program shall include spousal rights; (2) Provide to each participant, one year in advance of the participant's normal retirement age, a disclosure explaining (A) the rights and features of the lifetime income investment; (B) that once the participant reaches normal retirement age, fifty per cent of the participant's account will be invested in the lifetime income investment; and (C) that the participant may elect to invest a higher percentage of his or her account balance in the lifetime income option; (3) On the date a participant reaches his or her normal retirement age, invest fifty per cent of the participant's account balance, or such higher amount as specified by the participant, in the lifetime income investment; (4) Permit each participant to elect a date not earlier than his or her normal retirement age on which to begin receiving distributions, provided, in the absence of an election, such distributions shall commence not later than ninety days after the participant reaches his or her normal retirement age; and (5) [Establish procedures] Adopt regulations, in accordance with the provisions of chapter 54 whereby each participant may elect to invest a higher percentage of his or her account balance in the lifetime income investment. (c) The [board] Comptroller shall inform participants about their rights to withdraw funds from the program in accordance with the provisions of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended