National Association of Insurance and Financial Advisors

GovUpdate: Organized to Win - NAIFA’s Fiduciary Grassroots Campaign

July 27, 2015

Issue: Labor Department’s Proposal to Redefine Investment Advice Fiduciary Actions Taken: NAIFA Files Formal Comment Letters and Requests to Testify at Hearing; Launches Successful Grassroots Letter Campaign Background: In April, the Department of Labor (DOL) released a proposed regulation and related prohibited transaction exemptions (PTEs) to define who is a fiduciary when advising retirement account holders, as well as other employee benefit plans with an investment component (e.g....

Battle over Retirement Savings Fiduciary Standard Progresses

July 15, 2015

The ongoing struggle over whether and/or how to impose a best interest standard on advice in connection with retirement savings decisions is progressing. Last month brought hearings, briefings, meetings, and “political message” type legislation.   In general, consensus seems to be growing that most of the retirement savings and financial services industries will accept a best interest of the client standard of care for financial advisors and financial institutions. The Department of Labor...

Supreme Court Decisions Impact Health Insurance, Retirement Savings and Other Benefits Plans

July 15, 2015

Last month’s Supreme Court Affordable Care Act ( King v Burwell ) and same-sex marriage ( Obergefell v Hodges ) decisions will have substantial impact on health insurance, retirement savings and other benefits plans. Each will require sponsors of employee benefit plans—including health insurance, pensions, and other benefits—to review their plan terms, and to communicate with workers. In the case of employer-paid health insurance, it also means the need to comply with the significant reportin...

Senate Finance Committee Tax Reform Working Groups Submit Reports/Recommendations

July 15, 2015

On July 7, the five Senate Finance Committee tax reform working groups submitted their reports and recommendations to the committee’s leaders, chairman Sen. Orrin Hatch (R-UT) and ranking member Sen. Ron Wyden (D-OR). However, Finance Committee members cautioned, the reports do not reflect consensus on how to tackle systemic tax reform. And Sens. Hatch and Wyden have made it clear that while they will carefully consider the working groups’ thinking, they do not consider themselves bound by th...

Congress to Try Another ACA Repeal Bill As Well As ACA Modifications

July 15, 2015

Congressional GOP leaders say they are likely to try to move another Affordable Care Act (ACA) repeal-and-replace bill this summer, but prospects for enactment of such a bill into law remain dim. First, the Congressional Budget Office (CBO) has scored ACA repeal as a revenue loser of between $137 billion (as estimated under a dynamic scoring model) and $353 billion (using the standard static model) over 10 years. Under current budget law rules, that revenue loss would either have to be offset...