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Chairman Scott Statement on DOL Proposal Threatening Workers’ Retirement Savings

06.30.20

WASHINGTON – Chairman Bobby Scott (VA-03) issued the following statement after the Department of Labor (DOL) proposed a new fiduciary rule that would threaten workers’ hard-earned retirement savings. 

“As we continue to confront the worst public health emergency and economic crisis in recent history, the Department of Labor issued a new rule that undermines workers’ protections when making major decisions on how to save for retirement.  Specifically, the Department reinstated a loophole-ridden standard from 45 years ago enabling advisors and firms to sidestep their fiduciary duty to act in their retirement clients’ best interests. 

“While many advisors have their retirement clients’ best interests in mind, unethical ones have put their own profit motives ahead of their retirement clients’ interests. According to the Economic Policy Institute, “every year, retirement savers lose $17 billion acting on advice from financial advisors who have conflicts of interest.” The Obama administration sought to address this problem by issuing a sensible rule that closed these loopholes and prohibited advisors from ripping off their retirement clients. 

“After delaying the Obama-era rule and then refusing to defend it in Court, the Trump administration is now turning back the clock and reinstituting a deficient standard that fails to protect retirement savers. In doing so, this administration is choosing to side with unethical advisors and moving the Department away from its mission to assure workers’ retirement security. 

“The Department should abandon this proposal and start over. Workers and their families planning and saving for a secure retirement deserve far better.”

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