Many in Congress are joining thousands of the more than 19,000 commenters in voicing concerns with the Department of Labor’s controversial proposed “Retirement Security Rule: Definition of an Investment Advice Fiduciary.”
In fact, a bipartisan group of 50 members of the House of Representatives sent a letter on Jan. 8 to Julie Su, Acting Secretary of Labor, and Lisa Gomez, Assistant Secretary of the Employee Benefits Security Administration, expressing concerns with the DOL’s proposed investment advice rule and urges the DOL to withdraw and cease efforts to adopt the “Retirement Security” rule proposal.
And on Wednesday, the House Capital Markets Subcommittee will hold a hearing at 10 a.m. ET on “Examining the DOL Fiduciary Rule: Implications for Retirement Savings and Access.” Rep. Ann Wagner (R-MO) is the Subcommittee Chair, and the Ranking Member is Rep. Brad Sherman (D-CA).
The hearing will explore the necessity of the proposed rule, assess its alignment with existing regulations and legislative intent, and advocate for measures that enhance retirement security without creating unnecessary obstacles, according to a committee memorandum sent to members of the Committee on Financial Services by the Financial Services Republican Staff.
Scheduled to testify at the hearing are:
• Bradford Campbell, Partner, Faegre Drinker
• Susan Neely, President and CEO, American Council of Life Insurers
• Jason Berkowitz, Chief Legal & Regulatory Affairs Officer, Insured Retirement Institute
• Marc Cadin, CEO, Finseca
The hearing will be livestreamed and available for viewing with this link or visit the House Financial Services Committee homepage for more information. If you plan to attend in person, the hearing room is 2128 Rayburn House Office Building.
Bipartisan group of Reps want proposed rule withdrawn
In the letter to the DOL’s Su and Gomez—provided to 401(k) Specialist by the Insured Retirement Institute—the legislators say the proposed rule includes significant, unnecessary, and counterproductive changes to the existing regulatory framework governing the conduct of financial professionals who provide personalized investment advice to retirement savers under ERISA and the Internal Revenue Code of 19864 (the Tax Code).
Rep. French Hill (R-AR) and Rep. David Scott (D-GA) led efforts on the letter, with 50 reps signing out of 435 total members.
“DOL’s past efforts to expand these rules, which federal courts have repeatedly rejected, dealt a devastating blow to millions of American workers and retirees by impairing their ability to obtain much-needed affordable financial professional help to prepare for and achieve a secure and dignified retirement. We urge DOL to cease its efforts to adopt this proposal in order to prevent needlessly inflicting harm on millions of retirement savers across the country,” the letter states.
“Instead of pursuing this problematic and counterproductive rulemaking effort, DOL should focus its resources and efforts on implementing the critically important retirement security provisions enacted by Congress in recent years through the SECURE Act and SECURE 2.0 Act. These bipartisan legislative measures provide clear and appropriate opportunities for DOL to help America’s workers and retirees have opportunities to build their retirement nest eggs and enjoy a financially secure retirement.”
SEE ALSO:
- Final Fiduciary Rule Coming Soon as OMB Completes Review
- Fiduciary Rule Comment Letters Flood in to DOL as Deadline Passes
- Fiduciary Comments Hit 16k as DOL Releases Hearing Transcripts
- ‘A’ List Industry Lineup Set to Testify in Dec. 12-13 Fiduciary Rule Hearing
- DOL Fiduciary Rule Released; Industry Reaction Pours In