New DOL Proposal Gives Workers Choice and Security with Retirement Advice
Last month, the U.S. Department of Labor announced a proposed exemption that would allow more flexibility and choices for American workers and retirees planning their financial future. The announcement comes after the Fiduciary Rule – which was finalized in 2015 and challenged in Federal Court by the Lubbock Chamber and others – was vacated by the 5th Circuit Court of Appeals.
“The proposed exemption would be broadly available to investment advice fiduciaries who adhere to a best interest standard and plainly inform retirement investors that they are acting as fiduciaries when making investment recommendations,” said Acting Assistant Secretary of Labor for the Employee Benefits Security Administration Jeanne Klinefelter Wilson.
The U.S. Chamber of Commerce applauded the announcement as enhancing protections for both investors and those planning for retirement. “Americans who are struggling due to the COVID-19 pandemic should not have to sacrifice part of their retirement income because of politics, which is what drove the 2015 policy (the Fiduciary Rule). The new proposed rule makes investors return the central focus for workers’ pensions and employee retirement accounts,” said Tom Quaadman, executive vice president for the Center for Capital Markets Competitiveness, U.S. Chamber of Commerce.
In 2016, the Lubbock Chamber of Commerce joined with eight other plaintiffs suing to overturn the new Fiduciary Rule. The Chamber recognized that the former rule would limit the types of investment advice an adviser may provide and would have made access to quality financial advice more burdensome for employees of small businesses.
The COVID-19 pandemic has certainly shaken up retirement planning for countless American workers. It is a critical time for them to have access to proper financial advice, and the Lubbock Chamber is encouraged that the new proposal will allow for that.
“The proposed exemption would be broadly available to investment advice fiduciaries who adhere to a best interest standard and plainly inform retirement investors that they are acting as fiduciaries when making investment recommendations,” said Acting Assistant Secretary of Labor for the Employee Benefits Security Administration Jeanne Klinefelter Wilson.
The U.S. Chamber of Commerce applauded the announcement as enhancing protections for both investors and those planning for retirement. “Americans who are struggling due to the COVID-19 pandemic should not have to sacrifice part of their retirement income because of politics, which is what drove the 2015 policy (the Fiduciary Rule). The new proposed rule makes investors return the central focus for workers’ pensions and employee retirement accounts,” said Tom Quaadman, executive vice president for the Center for Capital Markets Competitiveness, U.S. Chamber of Commerce.
In 2016, the Lubbock Chamber of Commerce joined with eight other plaintiffs suing to overturn the new Fiduciary Rule. The Chamber recognized that the former rule would limit the types of investment advice an adviser may provide and would have made access to quality financial advice more burdensome for employees of small businesses.
The COVID-19 pandemic has certainly shaken up retirement planning for countless American workers. It is a critical time for them to have access to proper financial advice, and the Lubbock Chamber is encouraged that the new proposal will allow for that.
