01.25.24

Insurers Seek Spread of State Standard To Thwart DOL 401(k) Rule

by: Austin Ramsey

Insurers want to make sure there’s a clear distinction between the U.S. Department of Labor (DOL) and National Association of Insurance Commissioners retirement advice standards. The last time DOL’s Employee Benefits Security Administration attempted to rewrite the rules on who was considered a fiduciary when it comes to retirement advice, critics say more than 10 million American workers lost access to the advisors of their choice, resulting in a $900 billion loss in savings. “Life insurers have opposed the DOL’s efforts to expand the definition of fiduciary, not because it would preserve a so-called profitable status quo as some critics assert, but because it is unnecessary—ignoring substantive consumer protections that have been implemented in the last three years—and would ice-out Americans who rely on financial professionals and access to retirement security products,” said Susan Neely, president and CEO of American Council of Life Insurers.

Read the full article on Bloomberg Law