News & Updates

April 27, 2016

RE: Oppose the Resolution to block DOL’s final conflict of interest rule

April 26, 2016

Dear Representative:

As organizations that support the Department of Labor’s (DoL) rule to update and strengthen protections for retirement savers, we are writing to urge you to oppose H.J. Res 88, the Resolution of Disapproval that would block its implementation. This rule is a tremendous accomplishment in the fight to improve our nation’s retirement income security and should be supported.

The rule will at long last require all financial professionals who provide retirement investment advice to put their clients’ best interests ahead of their own financial interests. By taking this essential step, the rule will help all Americans — many of whom are responsible for making their own decisions about how best to invest their retirement savings — keep more of their hard-earned savings so they can enjoy a more financially secure and independent retirement.

In promulgating this rule, the DoL engaged in an open and inclusive process, and the final rule is better as a result. Specifically, the DoL responded to congressional and industry feedback by making significant revisions designed to facilitate implementation and compliance, while minimizing the harmful impact of conflicts of interest on the quality of retirement investment advice.

Small account holders and moderate-income retirement savers stand to benefit most from this rule. The academic literature makes clear that it is the less wealthy, frequently financially unsophisticated retirement savers who are most at risk when it comes to investment recommendations that are not in their best interests. Often, those recommendations promote investment products with high costs, substandard features, elevated risks or poor returns. While the financial adviser may make a substantial profit off these recommendations, the retirement saver pays a heavy price for investment advice that is not in his or her best interest, amounting to tens or even hundreds of thousands of dollars in lost retirement income.

Strengthening the protections for hard-working Americans who try to save for a secure and independent retirement is a key priority for our organizations, and to its credit, the DoL has worked diligently to make important and needed changes to an outdated rule. We urge all Members of Congress to join us in supporting this common sense and long overdue initiative and to reject this effort to block its implementation. Your hardworking constituents deserve no less.

Sincerely,

AARP
AFL-CIO
Alliance for Retired Americans
American Association for Justice
American Association of University Women (AAUW)
American Federation of Government Employees
American Federation of State, County and Municipal Employees (AFSCME)
Americans for Financial Reform
Association of University Centers on Disabilities
Better Markets
B’nai B’rith International
Center for Economic Justice
Center for Responsible Lending
Committee for the Fiduciary Standard
Consumer Action
Consumer Federation of America
Consumers Union
Demos
International Association of Machinists and Aerospace Workers
International Brotherhood of Boilermakers
International Brotherhood of Electrical Workers
International Union, United Automobile, Aerospace, & Agricultural Implement Workers of America (UAW)
Justice in Aging
Leadership Conference on Civil and Human Rights
Main Street Alliance
Metal Trades Department, AFL-CIO
National Active and Retired Federal Employees Association (NARFE)
National Committee to Preserve Social Security and Medicare
National Consumers League
National Council of La Raza
National Women’s Law Center
OWL-The Voice of Women 40+
NAACP
National Education Association
Pension Rights Center
Public Citizen
Public Investors Arbitration Bar Association
Rebalance IRA
SAFER UMass Amherst (SAFER: A Committee of Economists and other Experts for Stable, Accountable, Fair and Efficient Financial Reform)
Service Employees International Union (SEIU)
Social Security Works
United Food and Commercial Workers
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,

Allied Industrial and Service Workers International Union (USW)

U.S. PIRG Woodstock Institute Young Invincibles


Category: Blog, Press Releases