Human Resources

Aon Hewitt Submits Comments and Testifies at Hearing on Proposed Regulations Defining the Term "Fiduciary"

On December 17, 2010, Aon Hewitt submitted comments to the Department of Labor's (DOL) Employee Benefits Security Administration (EBSA) on the definition of the term "fiduciary." The proposed regulations were published in the Federal Registeron October 22, 2010.

Aon Hewitt's comment letter discusses:

  • How investment advice should include recommendations to take plan distributions;
  • Applicability of other laws; and
  • Costs and benefits.

The DOL's EBSA held a two-day public hearing from March 1-2, 2011 on the proposed rule defining the term "fiduciary." A total of 38 individuals from a wide variety of organizations interested in retirement planning testified during the event. Aon Hewitt was represented by Ted Novy (Senior Counsel).

In her opening statement, Phyllis Borzi, Assistant Secretary of Labor for the DOL's EBSA, indicated that the EBSA plans to "refine" the text of its proposed regulation amending the definition of fiduciary and issue a final rule by the end of the year.

During his testimony, Aon Hewitt's Ted Novy discussed the: 1) Expansion of the definition of investment advice to include the recommendations to a participant to take a plan distribution; and 2) Costs and benefits related to the expansion of the definition of investment advice.

Aon Hewitt's comment letter (Aon Hewitt Comments on Definition of Fiduciary) and written testimony (Fiduciary Hearing Statement.pdf) are available below.

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