Sen. Joe Manchin (DW.Va.) and a group of Republican senators are moving to overturn a new retirement investment planning rule that was finalized by the Department of Labor last month.
The Department of Labor unveiled a new rule last month that would update the definition of an investment fiduciary advisor under the Employee Retirement Income Security Act, if enacted. Manchin and 15 Republican senators joined in co-sponsoring a Congressional Review Act (CRA) resolution that would overturn this new rule.
Manchin argued that the rule, if enacted, would cause people to “lose access to investment advice because of how broadly the rule defines fiduciary.”
“This Department of Labor rule is yet another example of dangerous federal overreach. While I understand the Administration’s intent to protect Americans’ retirement savings, the truth is that this does exactly the opposite,” Manchin said.
O Department of Labor said the rule will require “credible investment advice providers to provide prudent, fair and honest advice free from excessive charges.”
Under the new rule, these fiduciaries must avoid giving recommendations “that favor the interests of investment advice providers – financial or otherwise – over retirement savers,” according to the department.
“Hardworking West Virginians and Americans need protection, not uncertainty, when it comes to their long-term financial security, and they certainly don’t want or need the federal government to be further involved in their personal retirement decisions ,” Manchin said.
Senator Ted Budd, one of the Republicans who introduced the resolution, described the rule as “the latest executive overreach from the Biden administration.” in a statement.
“Consumers would lose access to financial advice, reduce the number of financial management options and place a would-be retiree’s financial security in uncertainty,” he said. “That’s why I’m proud to lead the Senate’s bipartisan CRA to strike down this dangerous new regulation and hope it receives a floor vote.”
Rep. Rick Allen (R-Ga.) also led the companion bill to this legislation in the House and pointed out the new rule from the Department of Labor in a statement.
“By muddying the waters with excessive and burdensome regulation, the Biden DOL’s finalized fiduciary rule does more harm than good to the very people it claims to protect – retirees and savers,” he said.
The Hill has reached out to the Department of Labor for comment.
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