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Isakson, Alexander Call Obama’s Fiduciary Rule Decision Another Big Government Mistake

WASHINGTON – U.S. Senators Johnny Isakson, R-Ga., and Lamar Alexander, R-Tenn., released the following statements in response to President Obama’s veto today of their resolution that would have preserved access to retirement planning for middle income American families by preventing the Department of Labor from implementing its complex and burdensome “fiduciary rule.”

“President Obama’s entire legacy has been about taking away decision-making from hardworking Americans,” said Isakson, chairman of the Senate labor subcommittee. “The bipartisan vote by Congress to recall this harmful regulation was a message from the American people that they don’t want and can’t afford this administration further limiting their choices or using red tape to make their lives more expensive. Families should have the freedom and opportunity to look out for their best interests and plan for their retirement. A secure retirement aided by accessible planning is part of our American dream. On behalf of Georgia families, I will not stop fighting this harmful rule until I see it overturned.”

“The president’s veto means the brutal march of the Obama labor agenda continues without relief—despite both Houses of Congress voting to stop this so-called ‘fiduciary’ rule,” said Alexander, chairman of the Senate Help, Education, Labor and Pensions Committee. “If the outcome is anything like it was after a similar rule in the United Kingdom, retirement planning will soon be available only to the rich, as many financial advisors will only take on the new legal liability for clients with big accounts. I will work with my colleagues to find another way to stop this before it cripples low- and middle-income Tennesseans’ access to affordable retirement advice—and forces them to work longer and retire with less.”

The Department of Labor released its final rule – which rewrites its definition of the word “fiduciary” – on April 6, 2016, despite extensive concerns from a variety of stakeholders. In response, Isakson and Alexander along with 40 senators filed a resolution of disapproval under the Congressional Review Act against the new Department of Labor financial retirement planning rule. On May 24, 2016, the Senate voted 56-41 for Isakson’s resolution of disapproval. Obama vetoed the resolution today.