Washington, D.C., (February 24, 2016) – The Homeland Security and Government Affairs Committee, chaired by Sen. Ron Johnson, (R-WI), issued a report today examining the interaction between the U.S. Department of Labor and other relevant federal agencies during the department’s development of its proposed fiduciary regulation.
The report identifies a number of concerns. In particular, it found an apparent unwillingness by the department to give weight to the views of other regulators on relevant federal and state consumer protections already in place.
A regulation impacting the retirement savings of millions of Americans must be based on thoughtful deliberation. ACLI continues to believe, as noted repeatedly in comments on the proposed rule, that had these views been taken into account as part of a fair and balanced cost benefit analysis, including consideration of alternative approaches, a very different proposal would have resulted. If the opinions of other regulators had been taken into account, the proposal would not have raised very real concerns over consumers’ reduced access to valuable retirement advice and products.
Concerns over the proposal prompted the introduction of two bills in the House. They share the goal of the department – to ensure people preparing for retirement receive advice that is in their best interests – but would not put financial advice out of reach to lower- and middle-income Americans.
The two measures, the SAVERS and ARAP acts – Strengthening Access to Valuable Education and Retirement Support and Affordable Retirement Advice Protection -- were introduced by Reps. Peter Roskam (R-IL), Richie Neal (D-MA), Phil Roe (R-TN), John Larson (D-CT), Buddy Carter (R-AL), Michelle Lujan Grisham (D-NM), Tom Reed (R-NY) and David Scott (D-GA). They have been approved by the House Ways & Means Committee and the House Education and Workforce Committee.
The SAVERS and ARAP acts represent a bipartisan solution, supported by ACLI, to ensure people retain access to the financial help they need and is delivered in their best interest.
The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 300 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing more than 90 percent of industry assets and premiums. Learn more at www.acli.com.