Sen. Joe Manchin (D-W.Va.) and a group of Republican senators are working together to overturn a new retirement investment planning rule that was recently finalized by the Labor Department. The rule would update the definition of an investment advice fiduciary under the Employee Retirement Income Security Act if enacted. Manchin and 15 Republican senators have co-sponsored a Congressional Review Act (CRA) resolution to overturn this new rule, arguing that it would cause people to lose access to investment advice due to the broad definition of fiduciary.
Manchin stated that the Department of Labor rule represents dangerous federal overreach and would have unintended consequences by limiting access to investment advice. He believes that the rule would do more harm than good in protecting Americans’ retirement savings. The Labor Department has said that the rule is designed to ensure that investment advice providers offer prudent, loyal, honest advice free from overcharges and avoid recommendations that favor their own interests over those of the retirement savers.
Senator Ted Budd, one of the Republicans involved in introducing the resolution, described the rule as the Biden administration’s latest executive overreach. He believes that consumers would lose access to financial advice, reduce financial management options, and create uncertainty in retirees’ financial security. Rep. Rick Allen, who led the companion bill for this legislation in the House, criticized the Labor Department’s rule for adding burdensome overregulation that could harm retirees and savers instead of protecting them.
Manchin emphasized that hardworking West Virginians and Americans need protection for their long-term financial security and do not want the federal government further involved in their personal retirement decisions. The bipartisan effort to overturn the rule aims to give consumers more options and prevent any negative impact on retirees’ financial well-being. The resolution will need to receive a vote on the floor of the Senate in order to overturn the Labor Department’s new rule.
The lawmakers involved in the resolution believe that the Biden administration’s fiduciary rule does not serve the best interests of retirees and savers. By overturning this rule, they hope to prevent any harm caused by unnecessary regulation and ensure that individuals have access to a variety of financial planning options. The resolution’s supporters aim to protect Americans’ retirement savings and financial security from any potential negative impacts of the Labor Department’s new rule. They are pushing for a bipartisan vote to overturn the rule and maintain flexibility for consumers seeking financial advice.
Overall, the efforts of Sen. Joe Manchin, Republican lawmakers, and other supporters of the Congressional Review Act resolution aim to prevent any negative consequences of the Labor Department’s new rule on retirement investment planning. They argue that the rule represents federal overreach and undermines access to financial advice for Americans. By working together across party lines, these lawmakers hope to ensure that individuals have the resources and options needed to make informed decisions about their long-term financial security and retirement savings.
