Negligible Effect on Revenues from Bill to Repeal Fiduciary Rule, Estimates Say
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:
According to the Congressional Budget Office (CBO)
- 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.
, 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.