Ernst Fights to Halt DOL’s Misguided Fiduciary-Only Mandate

WASHINGTON—Biden’s Department of Labor (DOL) recently published a final fiduciary ruling that would harm retirement account owners and their preferred advisors by creating unnecessary red tape and limiting consumer choice. To stand up for Iowans, U.S. Senator Joni Ernst (R-Iowa) joined U.S. Senator Ted Budd (R-N.C.) to block DOL’s mandate.

“During a time of economic uncertainty, with Americans grappling with the challenges of ‘Bidenomics,’ it is irresponsible to put more than $60 trillion of retirement savings in jeopardy. Yet, that is exactly what the Department of Labor’s ill-conceived rule will do,” said Ernst. “Renowned as the nation's insurance capital, Iowa’s economy depends on the success of life insurance and annuities. I’ll continue working to block Biden’s harmful fiduciary mandate.”

Background:

Senator Ernst has been actively advocating for improvements to this rule for over three years. In September 2020, she and Senator Chuck Grassley (R-Iowa) sent a letter to then-Secretary of Labor Scalia, urging the DOL to make any necessary modifications to ensure this rule is workable for the insurance industry, particularly for independent insurance agents and their clients.

In December 2023, Senator Ernst joined several colleagues in a letter to Acting Labor Secretary Julie Su urging her to rescind the rule, writing, “at a time when the current retirement gap is $3.68 trillion, the last thing the Department needs to be doing is implementing rules that will take away retirement savings from our constituents.”

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