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.
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.
the regulations are issued, Borzi said, it will include three parts:
preamble and text of the regulations;
“robust” economic analysis, in which the administration discusses what harm is
done by conflicted advice, and including a cost/benefit analysis; and
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.”