Politics

Congress Delays Bill To Stop Gov’t Overreach Into Retirement Planning

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Juliegrace Brufke Capitol Hill Reporter
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Legislation offering an alternative to the Obama administration’s overreach into retirement planning likely won’t be brought to the House floor until the finalized rule is rolled out.

The Department of Labor’s proposed fiduciary rule, which was was sent to the Office of Management and Budget in February, opposes in-person retirement advice provided by commission-based financial brokers, instead of the Obama-favored option of using automated robo-advisers or fee-based services for investments.

Under the DOL’s initial proposal, the definition of who falls under the umbrella of a fiduciary would be expanded, widening the scope of regulations placed on financial planners – putting them at risk for an increase in lawsuits.

The rule has received pushback from both sides of the aisle, with critics fearing it will stop low- and middle-income Americans from seeking financial guidance by subjecting them to costly fees while they shop around for investments that best fit their needs. Several bills have been introduced in both chambers that offer an alternative while still protecting investors from conflicts of interest.

During a markup of House Ways and Means Subcommittee on Oversight Chairman [crscore]Peter Roskam[/crscore]’s bill, the SAVERs Act, in February, Democrats on the tax-writing panel argued it was too soon to pass legislation blocking the regulation since they have not yet seen what the final rule looks like.

“We’d rather wait until right after OMB unveils the rule so Dems can’t use the excuse of not knowing what’s in it to vote against, like they did in committee,” a GOP aide told The Daily Caller News Foundation.

Republican lawmakers slammed the proposed rule on Twitter Tuesday, to which the White House shot back on social media, saying the rule protects those planning for retirement.

 

Wisconsin Republican Sen. [crscore]Ron Johnson[/crscore] released a report in late-February detailing how the DOL failed to take the Securities and Exchange Committee’s recommendations and concerns into account.

The rule is expected to be finalized this spring.

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