Washington, D.C. – The following steering group members of the Save Our Retirement coalition – AARP, AFL-CIO, Americans for Financial Reform Education Fund, Better Markets, Center for American Progress, Consumer Federation of America, Economic Policy Institute, and Pension Rights Center – released this statement following an initial review of the Department of Labor’s (DOL) proposed rule protecting retirement savers from harmful conflicts of interest when financial professionals give retirement investment advice:
“Based on our initial review, the DOL has drafted a strong rule that would help bring millions of retirement savers much closer to a secure, dignified retirement. This rule aims to protect workers and retirees by closing significant legal loopholes, ensuring that the retirement investment advice they receive serves their best interests rather than the self-interest of financial professionals they turn to for advice.
Among other important protections, the proposed rule covers advice about rollovers to IRAs, the most important financial decision many people will ever make. It also covers advice to retirement plans, such as 401(k)s, where savers hold a significant portion of their retirement investments. The rule also covers advice about insurance products that are not currently protected under the securities laws or are covered insufficiently under weak and ineffective state insurance laws.
This rule promises to be a major improvement over the status quo, which allows too many financial professionals and firms to offer self-serving retirement advice at the expense of retirement savers. Given the financial stakes, it’s not surprising that certain Wall Street and insurance industry allies have immediately begun attacking the rule. Despite these attacks, there are many financial professionals who already meet these standards and want to see rules in place that require high-quality retirement investment advice that is not tainted by conflicts of interest.
As the comment process moves forward, we’ll continue to evaluate all aspects of the rule to ensure it is as strong as possible. And we’ll encourage all savers to share their views with the DOL so they can finally get the unbiased retirement investment advice they deserve.”
MEDIA CONTACTS:
AARP is the largest nonprofit, nonpartisan organization dedicated to empowering Americans age 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families. To learn more, visit www.aarp.org. Media Contact: Colby Nelson, (202) 706-8416, media@aarp.org.
The AFL-CIO is a federation of 60 national and international labor unions that represent 12.5 million working people. To learn more, visit https://aflcio.org/about-us. Media Contact: Liz Vlock, (202) 637-5034, LVlock@aflcio.org
Americans for Financial Reform Education Fund is a nonpartisan, nonprofit coalition of more than 200 civil rights, community-based, consumer, labor, small business, investor, faith-based, civic groups, and individual experts. We fight for a fair and just financial system that contributes to shared prosperity for all families and communities. To learn more, visit www.ourfinancialsecurity.org. Media Contact: Carter Dougherty, Carter@ourfinancialsecurity.org.
Better Markets is an independent, nonprofit, nonpartisan organization that promotes the public interest in the financial markets. Better Markets advocates for reforms that stabilize our financial system, prevent financial crises, and protect investors and consumers, ultimately so that our financial system serves all Americans more equitably. To learn more, visit www.bettermarkets.org. Media Contact: Madeline Tucker, Press Secretary, at 202-618-6433 or mtucker@bettermarkets.org.
Center for American Progress is an independent, nonpartisan policy institute that is dedicated to improving the lives of all Americans through bold, progressive ideas, as well as strong leadership and concerted action. Media Contact: Sarah Nadeau, 603-496-9417, snadeau@americanprogress.org.
Consumer Federation of America is a non-profit association of more than 250 national, state, and local pro-consumer organizations. It was formed in 1968 to represent the consumer interest through research, advocacy, and education. To learn more, visit www.consumerfed.org. Media Contact: Micah Hauptman, mhauptman@consumerfed.org.
Economic Policy Institute is an independent, nonprofit think tank that researches the impact of economic trends and policies on working people in the United States. EPI’s research helps policymakers, opinion leaders, advocates, journalists, and the public understand the bread-and-butter issues affecting ordinary Americans. To learn more, visit www.epi.org/. Media Contact: Monique Morrissey, 202-360-8526, mmorrissey@epi.org
The Pension Rights Center is a nonprofit consumer organization committed to protecting and promoting the retirement security of American workers, retirees, and their families. To learn more, visit www.pensionrights.org. Media Contact: Kate Pixley, (202) 296-3776, kpixley@pensionrights.org