The Washington Report
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April 4, 2018
Aon Publications
President Signs Omnibus Spending Bill
On March 30, 2018, the Equal Employment Opportunity Commission (EEOC) provided a federal district court with an update on how it will address the court’s earlier decision regarding the wellness rules under the Americans with Disabilities Act and Genetic Information Nondiscrimination Act.
The EEOC told the court that it had no plans to issue new wellness plan regulations in the near future and did not provide any new information to guide employers on how to proceed with these programs starting in 2019.
This Aon bulletin that provides a brief overview of the latest developments is available here.
New Circuit Court Decisions Change the Landscape Regarding Enforceability of DOL’s Fiduciary Investment Advice Rules
Key Take-Aways
- Ultimate fate of Obama Administration investment advice fiduciary standards remains uncertain.
- Recent appellate court opinions create dilemma for Trump’s Department of Labor (DOL).
- Standards in flux for financial advisors in retirement savings marketplace.
- Underscores importance of plan sponsor’s role as fiduciary for ERISA retirement savings plans.
Controversy continues around the DOL’s new rules regarding fiduciary investment advice. The regulatory guidance finalized in April 2016 includes a revised definition of fiduciary investment advice that encompasses a far broader scope of activity than the five-part regulatory test that was in effect for over 40 years. The new guidance also revised standards for some prohibited transaction class exemptions and added a new “best interest contract” requirement as a condition for investment advisors to conduct certain transactions without violating ERISA’s prohibited transaction rules.
The Aon bulletin, which provides a summary of the litigation, can be found here.