The ERISA Industry Committee Submits Letter to U.S. Department of Labor with Suggestions for New Rule
For Immediate Release
Washington, DC – The ERISA Industry Committee (ERIC) today submitted comments to the U.S. Department of Labor on its August hearing about the new definition of fiduciary regulations.
In the letter, ERIC –the only national trade association advocating solely for the employee benefit and compensation interests of America’s largest employers –suggests changes to ensure the new definition of fiduciary standards would not increase regulatory burdens or costs, creating uncertainty among plan sponsors, participants, and service providers.
“Employees, retirees, and their families who wish to seek advice on to how to invest their retirement accounts or receive education to help them achieve their savings goals should continue to have meaningful opportunities to do so,” said Annette Guarisco Fildes, president and CEO, ERIC. “ERIC’s comments and suggestions offer the best solution to creating a definition that provides a clear understanding of who is a fiduciary and the important role education and investment advice play in retirement planning.”
ERIC’s suggestions to the Department of Labor include:
- The regulation should make clear that discussions among co-workers should not constitute fiduciary investment advice;
- The regulation should narrow the definition of the term “recommendation” to require activities clearly involving endorsement or encouragement ;
- The investment education carve-out should not prohibit references to specific plan investment options; and
- Employers with limited involvement in a Health Savings Account (HSA) should not be deemed fiduciaries under the rule.
You can read ERIC’s letter to the Department of Labor in its entirety, here.