Proposed rule aims to protect Ohio's retirees
Thursday, November 9, 2023
The Biden administration has proposed a rule to help people save more in retirement and avoid "junk" fees from unscrupulous financial advisers.
According to the White House, a financial adviser may receive a commission as high as 6.5 % to recommend some insurance products, posing a conflict of interest.
Melondia Franklin Corpus, who finally reached her retirement milestone last May after 36 years of service as an educator, said when she filed for retirement six months prior, a flood of calls and solicitation started to pour in from financial advisers pitching retirement services and plans with few details.
"One guy called me, and it was almost a pressure-sale type thing, you know," Corpus recounted. "'This offer is only going to be good for this week,' blah, blah, blah, blah, blah, and I'm, like, 'No, I don't make a commitment based on that, please send me some information, let me look at it.'"
The new proposal is intended to standardize the rules for everyone paid to offer retirement advice and sell retirement products. A statement from the Insured Retirement Institute attacked Biden's proposal, claiming the "fiduciary rule will harm the very consumers he wants to help and deepen the nation's retirement crisis by limiting access to sound financial advice."
Existing fiduciary rules from the Employee Retirement Income Security Act and the Securities and Exchange Commission do not comprehensively cover all investment products such as one-time rollovers from a 401(k) to an IRA.
Corpus contended the new protections are a step in the right direction and should be expanded to all consumers.
"An adviser should never be recommending something to any client regardless of their status based on his commission," Corpus asserted. "I think retirees, definitely, but I think it should be across the board."
The proposal is open for public comment for 60 days before any potential revisions are made.
This reporting was supported in part by Media in the Public Interest and the George Gund Foundation.
get more stories like this via email
California tribes are headed to the White House Tribal Nations Summit tomorrow, where they will ask Congress and the Biden administration to create …
A new report shows Maine is exceeding the home-heating goals set forth in its ambitious four-year climate plan to reduce greenhouse-gas emissions…
By India Gardener / Broadcast version by Nadia Ramlagan reporting for the Kent State-Ohio News Connection Collaboration. According to Attorney …
It's estimated that one in three Kentuckians struggles to pay medical bills, and the issue continues to be a driving factor in personal bankruptcy …
Senate lawmakers are soon expected to vote on the Modernizing Opioid Treatment Access Act, legislation introduced this year by Republican Sen…
Health and Wellness
A new program in Utah wants to help first responders learn to recognize and work through their traumatic life events through horsemanship. This …
Health and Wellness
A coalition of Nevada groups is behind a statewide effort to make Nevada an Employment First state. That would align the state with a U.S. Labor …
Government accountability groups want increased transparency in New York criminal court decisions. This comes after a new report finds only 6% of …