WASHINGTON, D.C. – Members of the Save Our Retirement coalition, listed below, have sent a letter to congressional leadership opposing policy riders that would prevent the Department of Labor (DOL) from finalizing, implementing, or enforcing the proposed Retirement Security Rule.

Due to loopholes in the DOL’s current out-of-date rules, some financial advisors and firms are free to put their own self-interest ahead of retirement investors’ interests. They can steer retirement savers into products, services, or account types that maximize the advisors’ profiles while risking their clients’ financial well-being. These products often come with excessive costs, poor performance, high risks, or illiquidity that can tie up savers’ hard-earned money for years, often when they need it most. This conflicted advice eats away tens of billions of dollars a year in retirement savings.  It’s taking a huge toll on the ability of millions of workers and retirees to have a financially secure and dignified retirement, ultimately resulting in further costs to state and federal budgets.

The DOL’s proposed Retirement Security Rule would close loopholes to ensure that all financial advisors are required to provide advice that is in retirement savers’ best interest and that any conflicts of interest do not corrupt their advice. It would apply this standard regardless of the type of financial advisor that the retirement saver turns to or the type of product that a financial advisor recommends, from securities to insurance and from real estate to precious metals.

Contrary to opponents’ claims, the DOL has written a carefully crafted rule well within its legal authority; existing rules simply don’t protect retirement savers adequately; and savers with modest nest eggs will not lose access to sound advice. Indeed, under the new rules, modest income savers can be more confident that the advice they receive is in their best interest, not the interest of the adviser. Studies claiming the proposed Rule would harm savers have been thoroughly debunked. As the Public Investors Advocate Bar Association recently testified, the argument “that the financial services industry is just going to stop giving advice to people if they can’t give them conflicted advice or rip them off is offensive” to those advisers who do put their clients’ interest first.

As the SOR letter to leadership notes, the financial industry should be focused on providing financial advice in their customers’ best interest, not trying to influence Congress to defeat a Rule that would require just that. The proposed DOL Rule is a tremendous accomplishment in the fight to improve our nation’s retirement income security and deserves the support of Congress. Efforts to defeat the rule only work against the best interests of American families and workers. The SOR Coalition urges Members of Congress to stand with their hard-working constituents who are doing their best to save for a financially secure and dignified retirement and reject any attempt to deny finalization, implementation, or enforcement of the proposed DOL Retirement Security Rule.

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MEDIA CONTACTS:

AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. To learn more, visit www.aarp.org. Media Contact: Emily Pickren, (202) 431-7752, media@aarp.org.

The AFL-CIO is the country’s largest labor federation, with 56 affiliate unions representing some 12 million working men and women. To learn more, visit www.aflcio.org.  Media Contact: Isabel Alunate, ialdunate@aflcio.org.

American Federation of State, County and Municipal Employees (AFSCME)’s 1.4 million members provide the vital services that make America happen. With members in hundreds of different occupations — from nurses to public safety officers, childcare providers to sanitation workers — AFSCME advocates for fairness in the workplace, excellence in public services, and prosperity and opportunity for all working families. To learn more, visit http://www.afscme.org. Media contact: Natalia Perez Santos, nperezsantos@afscme.org.

Americans for Financial Reform is a coalition of more than 200 national, state, and local groups who have come together to work for a safer, fairer, simpler financial system. Members of our coalition include consumer, civil rights, investor, retiree, community, labor, faith based, and business groups. To learn more, visit www.ourfinancialsecurity.org. Media Contact: Carter Dougherty, (202) 251-6700, Carter@ourfinancialsecurity.org.

Better Markets is an independent, non-profit organization that advocates for reforms that make our capital, banking, and derivatives markets more stable and more equitable for all Americans seeking to build a better financial future.  For more information, visit www.bettermarkets.org.  Media contact:  Madeline Tucker, Press Secretary, at 202-618-6433 or mtucker@bettermarkets.org.

Consumer Federation of America is a non-profit association of more than 250 national, state, and local pro-consumer organizations. It was formed in 1968 to represent the consumer interest through research, advocacy, and education. To learn more, visit www.consumerfed.org. Media Contact: Micah Hauptman, mhauptman@consumerfed.org.

Economic Policy Institute is an independent, nonprofit think tank that researches the impact of economic trends and policies on working people in the United States. EPI’s research helps policymakers, opinion leaders, advocates, journalists, and the public understand the bread-and-butter issues affecting ordinary Americans. To learn more, visit www.epi.org. Media Contact: Monique Morrissey, (202) 360-8526, mmorrissey@epi.org.

The Pension Rights Center is a nonprofit consumer organization committed to protecting and promoting the retirement security of American workers, retirees, and their families. To learn more, visit www.pensionrights.org. Media Contact: Kate Pixley, (202) 296-3776, kpixley@pensionrights.org.

Public Investors Advocate Bar Association is an international bar association comprised of attorneys who represent investors in securities litigation. Since its formation in 1990, PIABA has promoted the interests of the public investor in all securities and commodities arbitration forums, while also advocating for public education regarding investment fraud and industry misconduct. To learn more, visit: https://piaba.org/. Media Contact: Max Karlin, (703) 276-3255, mkarlin@hastingsgroupmedia.com.