Far too many men and women will leave the workforce without the financial security they need to retire. Policymakers should be looking for opportunities to make it easier for working families—especially low- and middle-income families—to successfully plan for their retirement years. The last thing Washington should do is create barriers to the retirement security the American people need. Unfortunately, the Department of Labor has finalized a new regulatory scheme that will do just that, and in the process, hurt those who need the most help planning for retirement.
Many families rely on the assistance of trusted financial advisors to help lay the foundation for a secure retirement. Many small business owners also rely on this advice when putting together a retirement plan for their workers. Republicans have repeatedly expressed our belief that retirement advisors should serve their clients’ best interests, and we remain open to modernizing current rules to provide stronger protections for individuals. However, no one should support convoluted rules that make it harder for working families to save and plan for retirement.
The Department of Labor’s “fiduciary” rule—which was finalized in April 2016 and will go into effect in April 2017—will impose a host of costly new mandates and burdensome regulations on financial advisors that provide retirement advice. Bipartisan concerns have long been raised about the negative effects these mandates will have on individuals and small business owners. Instead of heeding these concerns, the department charged ahead with a flawed rule that will:
Make it harder for low- and middle-income families to save for retirement.
Hinder the ability of individuals to receive basic financial advice.
Leave some individuals with no choice but to search for financial assistance online.
Create new hurdles for small businesses that will have to pay more to offer their workers retirement options.
To protect access to affordable retirement advice, Rep. Phil Roe (R-TN), along with Reps. Charles Boustany (R-LA) and Ann Wagner (R-MO), introduced H. J. Res. 88. The resolution would invoke Congress’s powers under the Congressional Review Act to prevent the department’s rule restricting access to retirement advice from going into effect. The resolution follows earlier efforts to enact a responsible, bipartisan alternative to the department’s flawed rule. The resolution will help Americans retire with the peace of mind and financial security they deserve.
H. J. RES. 88:
Blocks an extreme, partisan rule that will make it harder for low- and middle-income families to save for retirement.
Protects access to affordable retirement advice for all Americans.
Ensures small business owners can continue to find the advice they need to help their employees plan for retirement.
Builds upon a larger, bipartisan effort to strengthen protections and help all Americans retire with the financial security and peace of mind they deserve.