Pension & Benefits Daily™ covers all major legislative, regulatory, legal, and industry developments in the area of employee benefits every business day, focusing on actions by Congress,...
June 20 — The labor secretary wants to consolidate three of the five recent lawsuits challenging the DOL's new fiduciary rule, which sets higher standards for those providing investment advice to retirement savers ( Chamber of Commerce of the U.S. v. Perez , N.D. Tex., No. 3:16-cv-01476-M, unopposed motion for consolidation filed 6/17/16 ).
The secretary filed a motion June 17 seeking consolidation of the three cases filed in a Dallas federal court. The groups bringing these lawsuits—which include the U.S. Chamber of Commerce, the American Council of Life Insurers and the Indexed Annuity Leadership Council—didn't oppose the secretary's motion.
The secretary faces two other legal challenges to the fiduciary rule; they are pending in federal courts in Washington, D.C., and Kansas.
In the Kansas case, Market Synergy Group Inc. asked the court June 17 to enjoin the secretary from enforcing portions of the rule affecting the sale of fixed indexed annuities. According to the Kansas insurance agency, the department's regulation of these products threatens to “obliterate” the longstanding relationships between independent insurance agents and their clients.
The National Association for Fixed Annuities also sought an injunction in the case it filed in Washington, arguing that the department's regulations will have an “immediate and devastating effect on the fixed annuity industry.”
The judge hearing NAFA's case scheduled a hearing for Aug. 25.
So far, none of the groups that filed suit in Texas are seeking a preliminary injunction to stop the department from enforcing its regulations while the lawsuits are pending.
The secretary's motion for consolidation was filed by Benjamin C. Mizer, John R. Parker, Judry L. Subar, Galen N. Thorp and Emily S. Newton.
To contact the reporter on this story: Jacklyn Wille in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Jo-el J. Meyer at email@example.com
Text of the secretary's motion for consolidation is at http://www.bloomberglaw.com/public/document/Chamber_of_Commerce_of_the_United_States_of_America_et_al_v_US_De/1.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)