Small business lobbies Congress to alter DOL fiduciary rule

Small businesses are pleading with lawmakers and the Department of Labor, saying they’re getting the short end of the stick with regards to the DOL’s proposed fiduciary rule.

Earlier this year, the DOL proposed regulations that would hold brokers and advisers to IRAs to the same fiduciary standard as registered investment advisers under the Employee Retirement Income Security Act.

Also see: “DOL fiduciary rule falls flat.”

“Small business owners continue to face headwinds and uncertainties in the economy, and the fiduciary rule will add to those challenges,” said Karren Kerrigan, president and CEO of the Small Business & Entrepreneurship Council, during an event hosted by the U.S. Chamber of Commerce on Capitol Hill Tuesday. “The rule will make it more difficult and costly to offer a retirement plan, which will make it harder to retain and compete for quality human capital. If we want small business to grow, innovate and thrive, this rule must be fixed.”

Rachel Doba, president of Indianapolis-based engineering firm DB Engineering, said many on her staff are young, fresh out of college and don’t yet understand the importance of putting money aside for retirement. She’s concerned the fiduciary rule, as proposed, will hinder her ability to educate workers about retirement.

“Millennials need to understand to put money to the future,” she said. “Hearing it from your boss might not be the best way,” she continued, adding that hiring a financial adviser might give her firm a competitive edge, but wouldn’t be feasible if the rule goes into effect.

Also see: “Final fiduciary rule rests in DOL’s hands.”

Patricia Owen, president of Faces Day Spa in Hilton Head, S.C., emphasized how real the fight is to attract retain top talent in a resort area peppered with big business competition.

“The big competitors can continue the status quo while I will hurt,” she said of what she’d continue to be able to offer in terms of retirement benefits.

Rep. Peter Roskam, (R-Ill.), a proponent of changing the rule, addressed a roundtable hosted by the Chamber of Commerce.

When pressed on what two major changes business owners should demand from their representatives, he suggested “the fiduciary rule” and “the fiduciary rule.” In addition, he said they should direct their own representatives to sign on to the “legislative principles” he introduced alongside Rep. Richard Neal (D-Mass.) that he says will help strengthen the retirement security of working families and ensure retirement advisers protects their clients’ best interests.

Also see: “DOL fiduciary opponents pin price on proposal: $3.9B.”

“What we don’t need are more obstacles to savings,” he said.