Final DOL Fiduciary Rule

The employer benefits industry has been waiting with bated breath for the issuance by the United States Department of Labor (the "DOL") final fiduciary definition rule under ERISA. That wait is now over. The final fiduciary definition rule was issued by the DOL today. The final rule, proposed over a year ago, requires retirement advisers to abide by a "fiduciary" standard thus requiring them also to act in their clients' exclusive best interest. The new rule applies both to retirement plans and to individual retirement accounts rolled over from qualified retirement plans. 

Based on an initial review, it appears that the DOL has made some changes in the rule that should be helpful with respect to providing needed investment education to retirement plan participants, reforming the best interest contract exemption and making the rule more helpful to small employers. On behalf of our members, PSCA sought changes in these important areas throughout the regulatory review process, and while we are still reviewing the final language, we are gratified that our expressed concerns seem to have resulted in helpful changes to the final rule.

Throughout the next several days PSCA will carefully review the new rule and will provide a thorough analysis of its likely impact on plan sponsors and the retirement industry as a whole to our members as soon as possible.  We will also be available to answer questions from our members and the media concerning the rule.  

The controversy over this new rule may not have ended today, but simply may have entered a new phase - a stage that might include legislative skirmishes and possibly litigation.  PSCA intends to carefully monitor developments in this new phase and will keep our members apprised of those developments.