Compliance

Shutdown Put Delay on Some Regulations

By Rebecca Moore editors@plansponsor.com | October 29, 2013
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October 29, 2013 (PLANSPONSOR.com) – The two-week government shutdown in October delayed the U.S. Department of Labor’s (DOL) work on the fiduciary redefinition, according to Assistant Secretary of Labor Phyllis Borzi.

Speaking to attendees at the 2013 American Society of Pension Professionals & Actuaries (ASPPA) Annual Conference in National Harbor, Maryland, Borzi said she cannot give a sure date when those regulations—which she called the “conflict-of-interest” rule—will be issued, but “we are very close to finishing.” She added that the rule is the DOL Employee Benefit Security Administration’s highest priority.

When the regulations are issued, Borzi said, it will include three parts:

  • The preamble and text of the regulations;
  • A “robust” economic analysis, in which the administration discusses what harm is done by conflicted advice, and including a cost/benefit analysis; and
  • A list of exemptions.

 

Borzi also mentioned the administration’s advanced notice of proposed rulemaking about lifetime income projections on participant statements. It is now in the stage of analyzing comments. Many commenters urged the administration not to require projections on statements, but Borzi said, “I don’t think that moves the needle, saying you can do it if you want.”