The Department of Labor's new fiduciary rule will not be swiftly implemented, as its review at the Office of Management and Budget "is just the beginning of the process," according to Phyllis Borzi, assistant secretary of labor.
Once the OMB's review is concluded, the DOL will hold a public comment period, have public hearings, and then reopen another comment period, explained Borzi.
Then, transcripts of public hearings will be posted for review, after which opponents and proponents of the rule will continue to have the opportunity to give the DOL their input.
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Borzi's comments were made at this year's first ERISA Advisory Council meeting, held March 20 in Washington, D.C.
Her comments were made as the 15-member Advisory Council gathered to set its 2015 agenda, which will include making From 5500s more efficient, and more functional for data mining, according to Bloomberg News.
The DOL's goal will be to publish new Form 5500 guidelines by the summer, and then open up a comment period to sponsors, their advisors, and participant advocates.
Also, the council will continue to consider whether, and how, to require lifetime income estimates with defined contribution account statements.
The DOL first signaled its interest in lifetime estimates in 2013. Under its first prospective proposal, participants' statements would show a projected account balance at retirement, along with the actual balance. Statements would also include two lifetime income illustrations.
The Advisory Council, which includes three sponsor and three participant advocates, will meet again on May 27.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
