National Association of Insurance and Financial Advisors

GovUpdate: Department of Labor Paves Way for State-Run Retirement Plans

August 29, 2016

Issue: State Sponsored Retirement Plans Date: 8/29/16 Action Taken: In a press release issued August 25, the White House announced the adoption of the Department of Labor's final rule which is designed to facilitate the enactment by states of laws establishing stat- run retirement plans. The final rule will be published in the Federal Register on Tuesday, August 30 th .  The rule describes the provisions a state-run plan must have in order to avoid being deemed an ERISA plan, and ...

September Spending Bills Put Controversial Regulations, including Fiduciary and Overtime Rules, in Play

August 15, 2016

The House version of an appropriations bill that will fund the Department of Labor (DOL) contains policy riders that would deny funding to DOL for implementation and/or enforcement of its new fiduciary and overtime rules. The Senate version of this appropriations bill does not contain these policy riders. Both the fiduciary and overtime rules are now final.   Prospects : Congress will spend most of September trying to resolve government-wide funding issues, with a catch-all spending bill...

House GOP Tax Writer Offers “Business Tax” Reform Plan

August 15, 2016

A new tax reform plan (the Simplifying America’s Tax System, or SATS) would replace the corporate income tax with a “business tax,” and would eliminate the differential in tax rates between investment and compensation income. On July 14, Rep. Jim Renacci (R-OH) offered a “concept paper” describing the plan to interested stakeholders, including NAIFA, for review and comment.   Business Tax : The SATS plan replaces the corporate income tax with a seven percent consumption-based goods-and-s...

House Approves Bill to Protect Advisors Who Report Elder Financial Abuse

August 15, 2016

On July 5, the House of Representatives approved the Senior Safe Act, H.R.4538, a bill aimed at “protecting financial advisors from liability when they try to stop the financial exploitation of seniors.” The bill passed by voice vote. NAIFA worked closely with bill sponsors to craft rules that work for both seniors who are at risk for abuse and the financial advisors who work with them.   H.R.4538 shields financial advisors who report elder financial abuse to federal or state securities r...

DOL Takes Last Step prior to Finalizing State Retirement Program Reg

August 15, 2016

The Department of Labor (DOL) has sent to the Office of Management and Budget (OMB) the regulations it intends to finalize to make it easier for states (and cities and other local governments) to set up retirement savings programs for workers whose employers do not offer retirement plans. OMB review is the last step in the regulatory process before finalization.   A significant barrier to state-run retirement programs has been the uncertainty about whether the states (or local governments...