Lawmakers raised scant attention to retirement issues during the roughly three-hour confirmation hearing for Labor Secretary nominee R. Alexander Acosta.
Sen. Elizabeth Warren, D-MA, directed questions on the proposed delay of the Labor Department’s fiduciary rule in the waning minutes of the Health, Education, Labor, and Pension committee’s hearing, asking the nominee for his general impression of the rule’s intention to protect American’s retirement savings by assuring they receive non-conflicted investment advice.
“Do I think it is important to protect the American retiree? Absolutely,” said Acosta.
Warren responded, saying the fiduciary rule will do that. “Do you think the rule is a good idea?” asked Warren.
“The rule goes far beyond addressing the standard of conduct of investment advisors,” responded Acosta.
Warren took immediate exception to that interpretation, arguing the rule is limited to addressing investment advisors’ standard of conduct.
Asked if he would support the rule if confirmed, Acosta said he would follow the orders issued in a Presidential memorandum to execute a new economic and legal analysis of the rule.
Warren accused Acosta of failing to give the committee straight answers on his position on the fiduciary rule and other Obama-era Labor regulations, claiming he was “hiding behind” President Trump’s executive orders instructing agency heads to review pending and existing regulations.
“If you can’t give me straight answers on your views to stand up for American workers, then I don’t have any confidence you are the right person for the job,” said Warren.
Immediately following her line of question, Sen. Lamar Alexander, R-TN, chair of the HELP committee, jumped in to defend Acosta’s reluctance to articulate specific policy prescriptions before he is confirmed to head Labor. “Are you the Secretary of Labor yet?” asked Alexander. Acosta answered “no.”
A longstanding opponent of the fiduciary rule, Alexander argued it will deprive millions of Americans of access to investment advice, and said it is “thoroughly reasonable” for Acosta to review the rule according to Trump’s presidential memorandum.
While questions on the fiduciary rule were limited to Sen. Warren’s inquiry, Acosta gave the committee some indication of how he would oversee the Labor Department in answering questions on other issues.
The committee spent most of the hearing inquiring about worker safety issues, whether Acosta would appeal a federal court ruling that blocks a controversial Obama-era overtime rule, how he would address the more than 20 percent cut in Labor’s budget proposed in the White House’s recently released budget blueprint, whether he would cut funding for employment training programs, and how he would address the gender pay gap.
Sen. Patty Murray, D-WA, ranking member of the HELP committee, asked Acosta if he would bow to political pressure from the Trump administration, something she said has been apparent in the early days of the administration.
“I’ve heard that concern,” said Acosta. “I don’t believe for a second senior officials would or should bow to political pressure. We all work for the President. And we will follow his direction, unless we feel we can’t. And then we would resign.”
At several points during the hearing, Acosta was reluctant to establish his priorities if confirmed. Asked if he would make the gender pay gap issue a priority by Murray, Acosta said gender discrimination “should not occur.”
But “if everything becomes a priority then things are no longer a priority,” he added.
Acosta said he believes in a unitary executive. “Ultimately, we have a boss,” said Acosta.
“That is what I’m worried about,” responded Murray.
|‘Largest pension crisis in American history’
Sen. Al Franken, D-MN, was the only lawmaker to raise questions on the Pension Benefit Guaranty Corp.’s underfunded multiemployer pension insurance program, which is projected to be insolvent by 2026.
Specifically, Franken probed Acosta for a solution to the Teamsters’ Central States Pension plan, which is projected to be insolvent in the next 10 years, potentially meaning cuts in the pensions of 400,000 plan participants.
“If confirmed, one of the largest pension crisis in American history will land on your desk,” said Franken. Labor Secretaries chair the board that oversees PBGC.
Acosta said he has not seen one proposal that would adequately address PBGC’s multiemployer plan funding issues.
Asked by Franken if he would promise that no pension checks would be cut, Acosta said, “I wish I could commit to that,” and noted that the country’s pension crisis extends to a $2 trillion funding shortfall in state and local government pensions.
Workers that have contributed to pensions throughout their careers have expectations, said Acosta. “I fully understand that. If I could come up with a solution on the spot, I wish I could.”
Today was Acosta’s fourth Senate confirmation hearing in his career. He was appointed by George W. Bush to sit on the five-member National Labor Relations Board in 2002, then as the head of the Justice Department’s civil rights division, and later as a U.S. Attorney for the southern district of Florida.
He has served as the dean of the College of Law at Florida International University since 2009, and chairman of the board of U.S. Century Bank, a Miami-based community bank, since 2013.
Members of the HELP committee have 10 days to submit further written questions for the record. Acosta will need support from a majority of HELP committee members to advance a confirmation vote to the Senate floor, where he will also need a simple majority.
Several media reports leading up to the hearing suggested committee Democrats would hammer Acosta on three controversies in his past.
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One regarded an amicus brief he filed to an Ohio court considering voter rights issues during the 2004 presidential election. Acosta was then head of the civil rights division at Justice.
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Another involved an Inspector General report showing that an attorney at Justice under Acosta gave political preference to conservative hires for non-political career positions.
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And another other regarded a plea deal Acosta struck with a billionaire hedge fund manager and registered sex offender as the U.S. Attorney in Miami.
While committee Democrats raised those issues, the questions did not come close to overshadowing lawmakers’ inquiries on Acosta’s policy perspectives.
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