Senators Issue Resolution of Disapproval to Overturn DOL’s ERISA New Fiduciary Rule

July 12, 2024
Hall Benefits Law, LLC

A group of mostly Republican senators has issued a resolution of disapproval to repeal the U.S. Department of Labor’s (DOL) new rule that expands who qualifies as a fiduciary under the Employee Retirement Income Security Act (ERISA). Two Republican representatives introduced a similar measure in the U.S. House of Representatives. These members of Congress criticize the new rule as damaging Americans’ ability to save for retirement.

DOL’s final rule broadens the definition of an investment advice fiduciary under ERISA to cover many more situations than before the rule. More financial advisors and insurance agents will now be considered fiduciaries under ERISA, thus subjecting them to ERISA’s rules. Under the new rule, even a one-time rollover of an employee benefits plan into an individual retirement account or other investment account would constitute advice subject to ERISA’s fiduciary rules.

According to the DOL, the final rule is necessary to protect American workers against receiving poor investment advice and wrongful conflicts of interest when investing their retirement savings.

However, the rule has drawn much criticism from industry groups, including the U.S. Chamber of Commerce. They claim the DOL’s rulemaking process that led to the final rule was rushed and failed to consider extensive public comments. Likewise, Republican lawmakers have sharply rebuked the rule as burdensome regulatory overreach and vowed to repeal it via legislation. Critics claim the final rule will cause consumers to lose access to valuable financial advice, have fewer financial management options, and threaten their financial security.

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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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.