The DOL’s fiduciary rule is facing a fresh challenge in the legislature as a bicameral group of senators and house representatives seek to overturn it.
In a combined effort launched Tuesday, the group – including House Representative Rick Allen and Senators Ted Budd and Joe Manchin, among others – introduced a joint resolution of disapproval under the Congressional Review Act to quash the DOL rule.
The contentious DOL rule, which offers a new definition of “investment advice fiduciary” under ERISA, has major implications for firms that offer basic financial education and investment planning courses, annuities, and other tools to support consumers’ retirement.
“The Biden administration’s latest executive overreach would make it harder for working families to invest and prepare for their financial future,” Senator Budd said in a statement. “Consumers would lose access to financial advice, reduce the number of financial management options, and throw a would-be retiree’s financial security into uncertainty.”
Calling the rule “yet another example of dangerous federal overreach,” Senator Manchin warned against its potential impact on his constituents’ ability to access investment advice.
“While I understand the Administration’s intent to protect Americans’ retirement savings, the truth of the matter is this does the exact opposite … due to how broadly the rule defines fiduciary,” he said.
“[S]ound financial advice when preparing for the future should be an easily accessible resource for hardworking Americans, not a bureaucratic nightmare,” added Representative Allen. “By muddying the waters with burdensome overregulation, the Biden DOL’s finalized fiduciary rule does more harm than good to the very people it is claiming to protect – retirees and savers.”
Senators Budd and Manchin, along with Senator Bill Cassidy and Senator Roger Marshall, are sponsoring the CRA resolution in the senate, SJ Res 79. Representative Allen is sponsoring its counterpart in the House.
In a statement, the Insured Retirement Institute expressed its support for both resolutions.
“The final rule creates significant hardships for today's workers and retirees, making it much more expensive and complicated – and for many consumers, impossible – to access reliable professional guidance,” IRI President and CEO Wayne Chopus said in an emailed statement.
“Congress must disapprove the final rule to prevent the deepening of the retirement savings gap and the establishment of unnecessary barriers for workers to overcome as they seek a secure and dignified retirement,” Chopus said.
The DOL fiduciary rule is also being challenged on the judicial front, with a coalition of industry representatives filing an action in Texas federal court against it earlier this month.
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