Members of the House Education and the Workforce Committee approved Thursday a resolution to block the Department of Labor’s recently released rule to amend the definition of fiduciary on retirement advice.
The resolution, H.J. Res. 88, was introduced on Tuesday and co-signed by Rep. Ann Wagner, R-Mo., along with Rep. Phil Roe, R-Tenn., chairman of the Subcommittee on Health, Employment, Labor and Pensions, and Rep. Charles Boustany, R-Louisiana, chairman of the Subcommittee on Tax Policy.
“Every American deserves retirement advice that’s in their best interest, but they also deserve access to the tools they need to save for the future,” Roe said. “We don’t need to choose between supporting affordable retirement advice and ensuring financial advisors act in good faith. Unfortunately, that reckless trade-off is one the administration is willing to accept. We must prevent this flawed rule from wreaking havoc on workers, retirees, and small businesses, and today’s vote is an important first step.”
On Monday, Republican Sens. Johnny Isakson of Georgia, Lamar Alexander of Tennessee and Mike Enzi of Wyoming introduced a similar resolution.
DOL announced its final rule on April 6; Congress may pass a resolution of disapproval of a rule within 60 days under the Congressional Review Act, which would block the DOL from implementing the rule or issuing a similar one without congressional authorization.
But President Barack Obama would likely veto such a resolution.