Legislation that would repeal the DOL’s fiduciary rule would have a negligible effect on federal revenues, say multiple cost estimates.
The Affordable Retirement Advice Act for Savers (H.R. 2823), introduced by Rep. David Roe (R-TN) on June 8, 2017, would repeal the fiduciary rule. The bill also would:
- amend the prohibited transaction rules applicable to fiduciaries of employer-sponsored pension and retirement plans, IRAs, and health savings accounts (HSAs);
- add a definition of investment advice that would be used to determine when a fiduciary relationship exists;
- add a new statutory exemption related to investment advice that a fiduciary can provide to those tax-favored plans and accounts, plan participants or beneficiaries; and
- change requirements regarding disclosure of potential compensation accruing to the fiduciary or an affiliate.
According to the Congressional Budget Office (CBO), the Joint Committee on Taxation (JCT) estimates that H.R. 2823 would have a negligible effect on federal revenues for the period 2017-27. It says that this is because pay-as-you-go procedures would apply.
Additionally, the CBO and the JCT estimate that the measure would not increase direct federal spending or budget deficits by more than $5 billion in any of the four 10-year periods beginning in 2028.
The House Committee on Education and the Workforce passed H.R. 2823 by a 23-17 vote on July 19; it is still before the House Ways and Means Committee.