H.R. 4293, the Affordable Retirement Advice Protection Act, would amend portions of the Employee Retirement Income Security Act of 1974 (ERISA) that prohibit self-dealing transactions by fiduciaries of employer-sponsored retirement plans. The bill would add a definition of investment advice to ERISA. The bill also would add a new statutory exemption related to investment advice that a fiduciary can provide to those plans, plan participants, or beneficiaries. Among other provisions, H.R. 4293 would change requirements regarding disclosure of potential compensation accruing to the fiduciary or an affiliate.
On April 6, 2016, the Department of Labor issued new regulations relating to investment advice within pension and retirement plans; those regulations are sometimes referred to as the “fiduciary rule.” H.R. 4293 would prevent those or any similar regulations from becoming effective unless a bill or joint resolution approving them was passed within 60 days of enactment of H.R. 4293.
CBO and the staff of the Joint Committee on Taxation (JCT) estimate that the bill would have a negligible effect on revenues over the 2017-2026 period. Enacting the bill would not affect direct spending. Because enacting H.R. 4293 would affect revenues, pay-as-you-go procedures apply.
CBO and JCT estimate that enacting H.R. 4293 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027.
H.R. 4293 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments.