Pension plans are designed to deliver accurate lifetime benefits, yet a persistent challenge is preventing payments from continuing after a retiree or beneficiary passes away. Historically, administrators relied on the Social Security Administration’s Death Master File, but restricted access since 2013 has forced plans to seek less reliable alternatives. As a result, the risk of overpayments has grown, compounded by stricter recovery limitations under the SECURE Act. To address this, many Defined Benefit plans are adopting retiree verification—or “proof of life”—processes to confirm beneficiaries’ status on a regular basis. Implementing a structured outreach and follow-up approach helps plans reduce risk while ensuring payments remain accurate and compliant.

A recent study by the National Institute on Retirement Security highlights a growing gap in Americans’ retirement readiness. The findings show a continued decline in the traditional “three-legged stool” of retirement income - Social Security, employer-sponsored plans, and personal savings - placing greater pressure on workers to self-fund their future. With fewer employees having access to defined benefit pensions and many holding minimal retirement savings, the average worker has accumulated only about 41% of what is needed for retirement. These trends underscore the urgent need for stronger policy solutions, improved plan access, and increased savings to ensure long-term financial security for future retirees.

Required Minimum Distributions (RMDs) have long been a core component of U.S. retirement policy, originally designed to ensure that more retirement assets are taxed as retirement income rather than as part of an individual’s inheritance. While the concept has existed for decades, the rules continue to evolve, most recently through the SECURE Act and SECURE 2.0. For plan trustees, administrators, and client service teams, understanding these requirements is critical to staying compliant and guiding participants effectively. Below is a clear, digestible overview of how RMDs came to be, how they’ve changed, and what they mean for both Defined Contribution (DC) and Defined Benefit (DB) plans.