REPORT: Feds Are Destroying Free Choice In The Retirement System

The Daily Caller reports:

Federal labor officials may soon destroy free choice in the retirement system by overhauling investment regulations, according to a report Wednesday.

The Department of Labor (DOL) has argued people are just not knowledgeable enough to plan for their own retirement. It has proposed a rule to categorize more people as fiduciaries in order to regulate them. The Competitive Enterprise Institute (CEI) warns the upcoming rule could undermine free choice and increase costs on retirees.

“Under the new rule, financial professionals who provide even one-time guidance or appraisal of investments could find themselves classified as ‘fiduciaries,'” the report detailed. “For centuries, the standard definition of fiduciary has been someone in a clear position of trust. In finance, this means someone whom the client has specifically entrusted to manage his or her assets and make investment decisions.”

Under current federal law the DOL can regulate anyone classified as fiduciary. If essentially everyone is classified as a fiduciary the department would then be able to regulate everyone. It would mean the department can limit what advise people can give or what choices people can make for their own retirement accounts. The rule has the potential to cause a significant rise in costs as well.

When words lose their meaning.... watch out.