The legislation was introduced by Representative John Boehner (R-Ohio). It would offer employers more protection in providing investment advice to plan participants and aims to update a federal law that predates the rise of employee-controlled pension plans, such as 401(k) plans.
In testimony at the hearing, assistant DoL Secretary Ann Combs noted that current law unintentionally discourages employers from providing their workers with access to high-quality investment advice.
She expressed the DoL’s support for the bill, saying that the department pursues the same objectives as those proposed by the bill: protection for participants, employers and service providers; a level playing field; greater choice among advisers and the expansion of investment advice for participants and beneficiaries in 401(k) type plans.
The bill now has 35 cosponsors – 27 Republicans and eight Democrats.
The EER Subcommittee will hold a meeting next week to consider the bill.
– Camilla Klein firstname.lastname@example.org
Read more at: Dol Embraces Advice Bill in Dramatic Turnaround