08.11.25

DOL Withdraws Annuity Safe Harbor Final Rule After Blowback

by: James Van Bramer

The U.S. Department of Labor (DOL) has withdrawn its July 1 rule that would have repealed the Pension Protection Act of 2006’s regulatory safe harbor, citing “significant adverse comments” before the July 31 deadline. The rule aimed to streamline guidance, arguing the safe harbor was redundant after the SECURE Act of 2019 created a complementary statutory safe harbor for insurer financial strength. Critics warned repeal would reduce protections and limit lifetime income offerings. The DOL’s withdrawal preserves both protections, allowing fiduciaries to choose the most suitable framework for annuity contracts while broader regulatory streamlining efforts continue.

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