H.J. Res. 142, a joint resolution providing for Congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Labor relating to ‘‘Retirement Security Rule: Definition of an Investment Advice Fiduciary’’
Cost Estimate
As ordered reported by the House Committee on Education and the Workforce on July 10, 2024
H.J. Res. 142, a joint resolution providing for Congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Labor relating to ‘‘Retirement Security Rule: Definition of an Investment Advice Fiduciary’’
As ordered reported by the House Committee on Education and the Workforce on July 10, 2024
By Fiscal Year, Millions of Dollars
2024
2024-2029
2024-2034
Direct Spending (Outlays)
0
0
0
Revenues
0
*
*
Increase or Decrease (-) in the Deficit
0
*
*
Spending Subject to Appropriation (Outlays)
0
*
not estimated
Increases net direct spending in any of the four consecutive 10-year periods beginning in 2035?
No
Statutory pay-as-you-go procedures apply?
Yes
Mandate Effects
Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2035?
*
Contains intergovernmental mandate?
No
Contains private-sector mandate?
No
* = between -$500,000 and $500,000.
Summary
H.J. Res. 142 would disapprove a final rule published by the Department of Labor in April 2024. By invoking a legislative process established in the Congressional Review Act, the resolution would repeal the rule and prohibit the agency from issuing the same or any similar rule in the future.
The rule significantly increases the number of financial services providers that must act as fiduciaries when providing advice about retirement plans and decisions. Under that standard, advisers must act solely in the best interest of plan participants and beneficiaries.
Repealing the rule is likely to increase fees paid by investors and may affect the types of investments held in retirement plans. Therefore, enacting H.J. Res. 142 could change the income received by firms and individuals, and as a result, the taxes paid by those entities. However, CBO and the staff of the Joint Committee on Taxation estimate that any changes in total federal revenue from enacting the resolution would be insignificant.
CBO estimates that the administrative costs for the Department of Labor to implement the resolution would be insignificant. Any related spending would be subject to the availability of appropriated funds.
