The Trump Administration Delays Fiduciary Rule Implementation
The The Trump Administration today directed the Department of Labor to re-examine the "Fiduciary Rule" and prepare an updated economic and legal analysis of its impact. This could result in the Department delaying the implementation of the Rule. Although early drafts indicated that the delay would be for a specific timeframe, the final executive order did not so specify. Click here to read the full memo.
The DOL states on its website: "The Department of Labor will now consider its legal options to delay the applicability date as we comply with the President's memorandum."
The Plan Sponsor Council of America has long been the Voice of the Plan Sponsor community with a focus on transparency and ensuring that ERISA helps protect plan participants and beneficiaries. PSCA continues to believe that many features in the final fiduciary rule further this goal. However, PSCA also realizes that there may be room for refinement and improvement of this regulatory guidance. A key priority for PSCA is to collaborate with the new Trump Administration to help find positive enhancements in this area which can best serve the interests of plan sponsors and their employees. Importantly, many plan sponsors facing the April 10 applicability date have been receiving new service agreements and documents that materially change the duties and responsibilities of the Service Provider. Allowing more time to understand and evaluate these changes could be of great value to Plan Sponsors in looking out for the interests of their participants and beneficiaries in accordance with their fiduciary duty.