A bipartisan group expressed strong optimism on Friday that a legislative proposal will be introduced soon to aid in strengthening retirement security for working families and ensuring that clients’ best interests are protected by retirement advisors.
The group, consisting of Reps. Peter Roskam (R-IL), Richard Neal (D-MA), Phil Roe (R-TN) and John Larson (D-CT), has called for a legislative solution to strengthen retirement security while not harming small businesses or working families.
The group’s potential legislative proposal follows growing concerns over a Department of Labor regulatory proposal that some fear will make it more difficult for low- and middle-income families to plan for retirement.
“In recent weeks, we have been working together to draft a legislative proposal reflecting the principles we believe will help Americans save for retirement,” the group said. “The growing bipartisan interest we have seen demonstrates the continued concerns many have with the department’s approach and the need for Congress to offer a responsible solution. While we still have a few details to finalize, we are optimistic we will introduce a bill before Congress breaks for the holidays.”
The Department of Labor’s regulatory proposal is expected to impose new mandates and regulatory requirements on financial advisors. Many on both sides of the aisle are concerned that the proposal could cause individuals to lose access to financial advisors while raising the cost of receiving financial advice, which could lead to fewer small businesses offering retirement plans.
The bipartisan group’s proposal, however, includes a set of principles that would protect small businesses and working families. Among the principles are the promotion of saving for a financially-secure retirement and requiring retirement advisors to serve the best interest of their clients.
Under the proposal, retirement advisors would also be required to deliver a clear, simple and relevant disclosure of material conflicts, including any compensation received, as well as investment fees, to individuals saving for retirement.
The proposal also says that public policies should never deny the financial information needed to make decisions to individuals and must protect access to investment advice and education for low- and middle-income workers and retirees.