Disapproving Department of Labor Rule Related to Definition of the Term ``fiduciary''

Floor Speech

BREAK IN TRANSCRIPT

Ms. SCHAKOWSKY. I thank the gentleman from Virginia for yielding to me and for his commitment to improving the lives of working Americans and retirees.

Mr. Speaker, this is a very dangerous bill as 86 percent of Americans believe that we are facing a retirement crisis in this country and as 75 percent are concerned about their own abilities to have secure retirements. More Americans fear outliving their money more than they fear death, and 8 in 10 want us to help them have guaranteed streams of income in retirement.

That is why I am just amazed that my Republican colleagues are pushing this resolution of disapproval on a carefully crafted, thoughtfully designed rule to improve retirement security, especially for people who need the help.

We have moved to an era when most workers, if they are offered any pensions at all, are given defined contribution options, like self- directed IRAs and 401(k)s. This means that their retirement security relies on the individual decisions they make, and many turn to financial advisers for guidance. They believe that when they pay for advice, that the advice that will be given will be in their best interests.

Why shouldn't they believe that?

The rule that my Republican colleagues want to overturn would ensure their best interests.

What happens when retirement investment advice isn't in the client's best interest?

Hard-earned retirement dollars are lost. It is estimated that Americans lose $17 billion a year because of conflicted advice, and individuals could lose nearly 25 percent of their assets over a 35-year period. Working women and men in this country and retirees are struggling, and the ``best interest'' standard is one step to help them.

I urge all of my colleagues to stand up for retirement security and reject this dangerous resolution. The ``best interest'' standard shouldn't just apply to financial advisers, it should apply to us here in Congress. Let's vote to protect the best interests of our constituents.

BREAK IN TRANSCRIPT

Source