In the coming weeks, the Department of Labor is hoping to issue new rules governing the investment advice given to retirement plan participants.
The new 401(k) rules are now being reviewed by the Office of Management and Budget. And the DOL hopes they’ll be out by the end of the month, said Phyllis Borzi, assistant secretary of labor for the DOL’s Employee Benefits Security Administration, speaking at a conference sponsored by the National Institute on Retirement Security.
Borzi didn’t say exactly what the new rules would cover. But she did mention they’ll be more faithful to the statutory provision than the ones we saw issued in the final days of George W. Bush’s presidency that would’ve allowed advisers affiliated with mutual fund and brokerage firms to provide investment advice.
Borzi went on to say that the new rules will be much more direct and streamlined, and will underscore the fiduciary duty of plan sponsors to carefully elect and monitor service providers.
In addition, she hinted that the Obama administration isn’t likely to waive fiduciary rules required of employers under the Employee Retirement Income Security Act (ERISA).
