DOL Fiduciary Rule Appeal Paused
- 5th Circuit Court of Appeals to pause its appeals concerning two court cases tied to the 2024 Retirement Security Rule, also known as the fiduciary rule.
- According to the DOL's motion, the delay would allow officials time to assess the cases and determine the best course of action.
- The appeals originated from two separate legal challenges.
DOL Seeks Delay in Fiduciary Rule Appeal Amid Transition
The Department of Labor (DOL) has requested the U.S. 5th Circuit Court of Appeals to pause its appeals concerning two court cases tied to the 2024 Retirement Security Rule, also known as the fiduciary rule. The agency cited the need for newly appointed officials to get up to speed on the complexities of the litigation.
According to the DOL’s motion, the delay would allow officials time to assess the cases and determine the best course of action. The agency proposed status reports every 60 days during the abeyance.
The appeals originated from two separate legal challenges. The Federation of Americans for Consumer Choice (FACC) initiated one case in the Eastern District of Texas. The other was filed in the Northern District of Texas by a coalition of groups, including the American Council of Life insurers, the Insured Retirement Institute, and the National association of Insurance and Financial Advisors.
U.S. District Judge Jeremy Kernodle, presiding over the FACC case in Tyler, Texas, had previously issued a stay on the fiduciary rule in July, just two months before its planned implementation.
The DOL, which has spent 15 years developing various iterations of the fiduciary rule to protect retirement savings and ensure sound retirement advice, formally appealed the stays in September.
What’s next
The 5th Circuit Court of Appeals will consider the DOL’s request. The ultimate outcome will impact the future of the 2024 Retirement Security Rule and the standards for those providing retirement advice.