Posted on 02/26/2010 4:28:07 PM PST by mdittmar
Rules enhance retirement advice and transparency for workers
WASHINGTON, Feb. 26 /PRNewswire-USNewswire/ -- Today, at a White House forum hosted by Vice President Joe Biden, the U.S. Department of Labor announced two new rules designed to enhance retirement security and transparency for the millions of workers covered by 401(k), pension and other retirement arrangements. The announcement was part of the White House Middle Class Task Force's year-end report, which the vice president released at this morning's event.
During the past year, the Middle Class Task Force has focused on solutions to the challenges facing America's middle class — including retirement security and the need for high-quality jobs for middle class workers. The report details the year's work of the task force, and it includes a proposed rule on investment advice. The department also is announcing the publication of a final rule on multiemployer plan transparency.
"A secure retirement is essential to workers and the nation's economy. Along with Social Security and personal savings, secure retirement allows Americans to remain in the middle class when their working days are done. And, the money in the retirement system brings tremendous pools of investment capital, creating jobs and expanding our economy," said U.S. Deputy Secretary of Labor Seth Harris. "These rules will strengthen America's private retirement system by ensuring workers get good, objective information. When that happens, workers make the kind of decisions that are good for their families and the nation as the whole."
The first of the two rules would ensure workers receive unbiased advice about how to invest in their individual retirement accounts or 401(k) plans. If the rule is adopted, it would put in place safeguards preventing investment advisors from slanting their advice for their own financial benefit. Investment advisors also would be required to disclose their fees, and computer models used to offer advice would have to be certified as objective and unbiased. The department estimates that 2 million workers and 13 million IRA holders would benefit from this rule to the tune of $6 billion.
The second rule announced today establishes new guidelines on the disclosure of funding and other financial information to workers participating in multiemployer retirement plans — those collectively bargained by unions and groups of employers. It will ensure transparency by guaranteeing workers can better monitor the financial condition and day-to-day operations of their retirement investments. The rule will go into effect in April 2010.
To view the White House Middle Class Task Force Report, visit http://www.whitehouse.gov/strongmiddleclass. To view the Notice of Proposed Rulemaking on Investment Advice and the final rule on multi-employer disclosure, visit http://www.dol.gov/ebsa.
Written comments on the investment advice proposal should be addressed to the Office of Regulations and Interpretation, Employee Benefits Security Administration, Room N-5665, U.S. Department of Labor, 200 Constitution Ave. NW, Washington, D.C. 20210, Attn: 2010 Investment Advice Proposed Rule. The public also may submit comments electronically by email e-ORI@dol.gov or through the federal e-rulemaking portal at http://www.regulations.gov.
U.S. Department of Labor releases are accessible on the Internet at http://www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202-693-7828 or TTY 202-693-7755. The Labor Department is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit http://www.dol.gov/compliance.
SOURCE U.S. Department of Labor
RELATED LINKS
http://www.dol.gov/
Something smells here.
Their coming for your savings America!!!
...again...
On the surface, these both look like good rules. Not all regulation is bad. Disclosure of fees and self-dealing is a good thing for sales droids (stock brokers). The other rule forces transparency in union-maintained retirement funds, yet another excellent idea.
I do admit that it’s unusual for a regulation to come out of the Obama administration that isn’t somehow aimed at government takeover and destruction of the private economy, that is, solely self-serving for the Obamunists.
Still, even a blind pig finds an acorn once in a while.
And all of this will accomplish exactly......
Wait for it.....
......nothing
That’s right. Since most people get little to no actual advice from anyone in regards to their 401k’s, they spend most of the time trying to chase down the hottest mutual funds. This causes them to buy high and sell low.
Of course this also happens when people do get advice from an advisor. That advisor normally tells them to diversify their portfolio, but then they don’t listen. They still decide to try and chase the hottest funds.
The reality is that most 401ks and IRAs give the holders a number of funds to choose from and if their is an advisor involved, that advisor will try to diversify the account.
This rule is just stupid enough to be Joe Biden’s baby.
Ping!
Do you know of any good pizzerias in Costa Rica?
..but not exclude government benefit.. like using IRA acct or 401k acct to buy treasures notes.
What are the implications for the unfunded and unsustainable public sector pensions at the State and Muncipal levels? Is this a smokescreen?
Has HELL frozen over? I just took a look at DU and they are turning on Obama and Biden, on this subject,like a junk yard dog!
Now to the decontamination chamber.
Yup!! http://www.freerepublic.com/focus/f-news/2454137/posts http://www.freerepublic.com/focus/f-news/2453735/posts http://www.freerepublic.com/focus/f-news/2432995/posts
“George Soros - The Most Evil Man in America”
http://selwynduke.typepad.com/selwyndukecom/george-soros-the-most-evi.html
Search any portal for Soros and transparency. The Open Society Institute is thick with this tripe.
Typical lib. Thanks, good link.
“Retirment security”. Hmmm. Probably they’ll take “retirment liberty” in trade.
Something smells here.
Well, yeah. It stinks to high heaven. This is the opening salvo - - the camel's nose under the tent - - in the government's move to seize control of private retirement accounts for, you know, what this communist p.o.s. said: "...investment capital, creating jobs and expanding our economy."
Today it's, "investment advice".
Tomorrow it's, "mandated investment diversity".
The day after that it's, "the government will handle your investments for you".
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