Scheduling
Time & Attendance
Forecasting
Employee App
Payroll Integrations
Communications
Archive
By Staff Report
Sep. 21, 2009
Now that the Department of Labor is scrapping a rule proposal that would have allowed brokers affiliated with financial-services firms to provide advice to 401(k) participants, Congress will move forward with legislation that would require that such advice be given by independent advisers, according to a key congressman.
The rule proposal was one of several Labor regulations put forth by the Bush administration during its final days.
Labor Secretary Hilda Solis “will work with Congress to find ways to further develop the existing market of qualified independent advice,” said Rep. Robert Andrews, (D-New Jersey), chairman of the House Education and Labor Committee’s Health, Employment, Labor and Pensions Subcommittee.
His recent comments came after Assistant Labor Secretary Phyllis Borzi, head of the Employee Benefits Security Administration, told a conference of 401(k) administrators that new regulations will be issued for investment advice to participants in the $2.3 trillion 401(k) market.
She gave no timetable for issuing a new proposal.
In July, the House Education and Labor Committee approved the 401(k) Fair Disclosure and Pension Security Act of 2009.
The bill, which was sponsored by Andrews and committee chairman George Miller, D-California, prohibits advisers affiliated with financial-services firms from offering advice if their compensation rises and falls with specific product recommendations.
The Pension Protection Act of 2006 would have to be changed for the DOL to issue the kind of investment advice rules Congress would support, Andrews indicated.
“It will take statutory and regulatory change to create the goal of qualified-independent-investment advice affordable to every investor,” he said.
Filed by Sara Hansard of Investment News, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.
Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers
Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.
Staffing Management
Managing employee time-off requests: A guide for business ownersSummary Vacation, sick time, PTO banks, and unpaid leave are only a few forms of employee time off — Mo...
Technology
Labor analytics: A how-to guide for company leadershipMake sure to start small, clean your data, use data from a variety of sources and use desired business ...
data analytics, employee data, HR Tech, people analytics, talent management
Technology
Why tattleware isn’t the solution for underperforming teamsIf your employees can take their smartphones out of their pockets to circumvent your efforts, how can y...
employee monitoring, HR technology, tattleware