The U.S. Department of Labor (DOL) has filed a motion with the U.S. Court of Appeals for the Fifth Circuit to pause its appeals of two federal court cases challenging its new Retirement Security Rule. This move follows two July 2024 federal court orders staying the implementation of the rule, which was supposed to go into effect in September 2024.
The new Retirement Security Rule extends fiduciary responsibilities under the Employee Retirement Income Security Act (ERISA) to annuity sales. The new rule would have required that financial advisors act in their clients’ best interests instead of receiving vacations, cash bonuses, and other perks from insurance and annuity companies to sell their products. However, industry trade groups, including the American Council of Life Insurers and the Federation of Americans for Consumer Choice, immediately sued to block the rule. After two federal courts stayed the new rule, the DOL under the Biden administration filed notices of appeal to the Fifth Circuit.
The Trump administration’s DOL has asked the Fifth Circuit to delay its appeal. The DOL cited new administration officials needing to familiarize themselves with the rule requirements and the lawsuits for the delay. Predictably, the plaintiff trade organizations did not object to the DOL’s motion.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
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