Barletta Votes to Protect Access to Retirement Advice
WASHINGTON – Congressman Lou Barletta (PA-11) today voted to protect access to affordable retirement advice for low- and middle-income families, blocking the Department of Labor’s (DOL) flawed “fiduciary rule.” The DOL rule imposes new mandates and regulations on retirement advisors, raising bipartisan concerns about negative impacts on individuals and small business owners. The bill, H.J.Res. 88, which blocks the rule, passed the House of Representatives by a vote of 234-to-183 and now heads to the Senate for its approval.
“Americans are living longer lives than ever before, which means that retirement planning is even more important,” Barletta said. “The federal government ought to make it easier for people and small employers to get the best advice possible, not put up barriers. This legislation will help people get the information and advice they need, and therefore provide workers with a better chance at saving for their retirement years.”
The proposed DOL rule would dramatically alter how families and small business owners receive financial advice. The rule would prohibit some of the most basic advice available, such as assistance in rolling over funds from a 401(k) into an Individual Retirement Account, or determining the distribution of funds upon retirement. Small business owners would be denied certain assistance while determining investment options for employees, making it more likely that small employers will forego retirement plans for workers altogether. In addition, low- and middle-income families with fewer resources would lose access to financial advice completely or be forced to pay substantially higher fees to continuing seeing advisors they already trust.
Under the Congressional Review Act, Congress may pass a resolution of disapproval to prevent, with the full force of the law, a federal agency from implementing a rule or issuing a substantially similar rule without congressional authorization. The resolution would block the Department of Labor’s fiduciary rule, which is scheduled to go into effect in April 2017.