The House Education and Workforce Committee today approved the Retirement Security Advice Act by a 29-17 vote. The legislation, sponsored by committee Chairman John Boehner, R-Ohio, now goes before the full House. "We are going to be pushing very hard to get the bill on the full floor and pass it through the House before Congress adjourns within a month, said Kevin Smith, a committee spokesman.
The bill would make it easier for employers to offer professional financial advice to workers for their retirement savings, without being liable for the advice. The plan also would allow 401(k) plan service providers to offer investment advice, including recommending their own funds, but would require them to disclose fees and any potential conflicts of interest. Investment advisers that offer advice to plan participants would have to assume fiduciary responsibility, including liability for the advice they offer.