A coalition of conservative groups joined the bipartisan push back Thursday against a rule which aims at restricting how people invest in retirement.
The coalition is being led by the Competitive Enterprise Institute (CEI). The goal is to stop what is known as the fiduciary rule implemented by the Obama administration. The rule restricts investment choices for retirement and savings plans. The Department of Labor (DOL) says most Americans are just not knowledgeable enough to make good investments. Arguing it hurts retirement planning and liberty, the coalition letter is urging Congress to defund the rule.
“Under the fiduciary rule, the DOL claims authority never granted by Congress to greatly restrict investment choices for 401(k)s, individual retirement accounts (IRAs) and other saving vehicles,” the letter states. “The DOL doesn’t even bother to hide its contempt for the intelligence of American savers.”
Americans for Tax Reform, the Independent Women’s Forum, Americans for Prosperity and FreedomWorks signed the letter. The problem for the coalition and many Republican lawmakers is the rule greatly restricts individual liberty and freedom of choice.
Democrats say it hurts the poor and middle-class by limiting access to retirement planning. On Sept. 24, 96 House Democrats sent a letter to DOL Secretary Thomas Perez expressing their concerns. Democratic Rep. Gwen Moore led the way in building opposition among Democrats.