Signs that a bipartisan compromise on retirement asset rollover rules might be possible showed up Thursday during a House hearing on the U.S. Department of Labor's new fiduciary rule proposals.
Rep. Donald Norcross, D-N.J., talked about his experience as an electrician who served as the assistant manager of his union local and helped other union members with retirement plan concerns.
He expressed horror at the idea of plan participants feeling ripped off by getting advice that produced disappointing results.
But he also objected to the idea of retirement savers failing to get adequate advice because insurance agents and others who have traditionally provided some of it are frightened that anything they say could turn them into plan fiduciaries and saddle them with poorly defined risk for bad outcomes.
"The baby is going out with the bathwater," Norcross said. "I implore us to work together to get this right."
What it means: Actual federal retirement advice standards could end up being different from what the Labor Department has proposed.
The hearing: The House Education and the Workforce Committee's Health, Employment, Labor and Pensions Subcommittee held the hearing to discuss "protecting American savers and retirees from DOL's regulatory overreach."
Many Democrats have backed the Biden administration's revival of the push to impose a fiduciary standard on anyone involved with helping users of 401(k) plans, IRAs or other retirement accounts to move their assets into other investment arrangements. Most Republicans have opposed the efforts.
Many Democrats at the hearing emphasized concerns about the potential impact of conflicted advice.
Rep. Mark DeSaulnier, D-Calif., cited Obama administration estimates that conflicted advice may be costing retirement savers $17 billion.
