Senate Confirms Aronowitz to Lead EBSA
The Senate on Thursday confirmed Daniel Aronowitz as assistant secretary of Labor for the Employee Benefits Security Administration (EBSA).
Aronowitz, along with 47 other nominees under the Trump administration, were confirmed in a 51-47 vote by the Senate.
Aronowitz’ new role in overseeing EBSA comes as the subagency faces potential changes to its administration and management. On Sept. 17, a House committee voted to advance several bills that would increase transparency and oversight within EBSA, as the subagency prepares for a possible $10 million budget cut.
The package of legislation also supports the usage of employee stock ownership plans (ESOPs) by creating a safe harbor that would allow fiduciaries to use appraisers who follow IRS guidelines in valuing ESOP shares.
Aronowitz stated his support for the plans during a Senate HELP Committee confirmation hearing in June, where he said he would “end the war on ESOPs” as assistant secretary of Labor.
I think [ESOPs are] the best way for employees to get an additional benefit and ownership in an American company,” Aronowitz was quoted as stating. “What the Department is doing is nitpicking the professional judgment of the valuation professionals. I’m going to put an end to that. Because I think unless there is a clear conflict of interest, then the valuation is appropriate when done by an independent valuation firm.”
Aronowitz is one of the 48 Trump administration nominees who won their confirmation with a singular vote. Senate Republicans last week passed a measure that would allow the advancement of numerous nominees with one majority vote—a move said to deter Democrat lawmakers from stalling the confirmation process. Senate Minority Leader Chuck Schumer had previously stated that Democrats were delaying the nominations because Trump’s picks are “historically bad.”
Among the confirmed include deputy secretaries for the Department of Defense and Energy.
Aronowitz succeeds Janet Dhillon, who served in an acting assistant secretary capacity at EBSA following Lisa Gomez’s resignation in January as part of the outgoing Biden administration. He was previously president of fiduciary liability insurance underwriting company Encore Fiduciary, before stepping down to prepare for the upcoming role.
Several industry organizations issued statements of support following news of Aronowitz’ confirmation.
“Congratulations to Daniel Aronowitz on his confirmation as Assistant Secretary of Labor for the Employee Benefits Security Administration,” said Wayne Chopus, president and CEO at the Insured Retirement Institute (IRI). “IRI looks forward to working with him to advance retirement policies that expand workers’ and retirees’ opportunities to save and provide a protected, sustainable retirement income stream that they cannot outlive.”
David Chavern, president and CEO of the American Council of Life Insurers, a trade association that advocates for the life insurance industry, added that the organization looks forward “to working with Mr. Aronowitz and his team on policies that ensure people can access the tools they need to prosper and thrive.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
