1. Short title This Act may be cited as the Lifetime Income For Employees Act . 2. Default investment in annuity contracts (a) In general Section 404(c)(5) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1104(c)(5) ) is amended— (1) in subparagraph (A)— (A) by inserting or subparagraph (C), as appropriate, after subparagraph (B) ; and (B) by inserting or in a covered annuity contract after by the Secretary ; and (2) by adding at the end the following: (C) Covered annuity contract (i) In general For purposes of this paragraph, the term covered annuity contract means an investment in an annuity contract that meets the following requirements: (I) The annuity contract does not impose a liquidity restriction on the transfer of invested amounts during the 180-day period beginning on the date of the initial investment in such contract by the participant or beneficiary. (II) The fiduciary ensures that each participant or beneficiary is provided notice in writing in accordance with clause (ii). (III) The fiduciary allocates not more than 50 percent of any periodic contribution or, immediately after a rebalancing of account investments, 50 percent of the value of the assets of the account, to the annuity contract (or, as applicable, to the portion thereof to which a liquidity restriction applies after the 180-day period in subclause (I)). (ii) Notice requirement For the purposes of this subparagraph, each participant or beneficiary shall be provided notice in writing in a manner that is reasonably designed to be understood by the average plan participant, as follows: (I) Not later than 30 days in advance of the initial investment, a notice that includes— (aa) an explanation of the circumstances under which assets in the account may be invested on behalf of the participant or beneficiary in the annuity contract, including an explanation of the targeted range and maximum amount or percentage of such assets to be invested