The Obama administration has decided to cancel implementation of a final rule that was approved in January and work on rewriting and reissuing some of the regulations that were in the final rule.
The Employee Benefits Security Administration, an arm of the U.S. Department of Labor, has withdrawn regulations issued in January that were developed by the Bush administration to implement the investment advice provisions in the Pension Protection Act of 2006.
The regulations would have encouraged employers to offer retirement plan participants planning advice by establishing guidelines for advice programs.
Supporters of the regulations are condemning the move to withdraw the final rule.
“The Pension Protection Act, which cleared the way for workers to receive customized retirement planning advice, was enacted by Congress with overwhelming bipartisan support,” Rep. John Kline, R-Minn., the highest-ranking Republican on the U.S. House Education and Labor Committee, says in a statement. “I am deeply troubled the administration would unilaterally withdraw these regulations and deprive millions of Americans of an additional tool to help them plan for a secure retirement.”