Rep. Foxx: DOL ‘Foreshadows Abusive Regulatory Expansion, Gross Overreach’

House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) on Oct. 5 sent a letter to Employee Benefits Security Administration (EBSA) Assistant Secretary Lisa Gomez  that raises concerns about the Department of Labor’s (DOL) potential regulations that could affect retirement plans. 

Foxx argued that DOL’s Request for Information (RFI) “contemplates significant changes” to the DOL’s electronic delivery guidance and goes well beyond what Congress intended when it passed SECURE 2.0. 

“The RFI includes several questions targeting the paper statement requirement enacted in section 338 of SECURE 2.0,” Foxx wrote. “These RFI questions contemplate amendments to DOL regulations well beyond the provisions of section 338. Congress’ directives to the Secretary of Labor in section 338 are clear, specific, and intentionally limited. This letter is intended to remind DOL of its obligation to comply with the statutory provisions of section 338, as limited by Congress.” 

She added that RFI Question 21 contemplates additional, and “very significant” regulatory requirements not authorized by Congress.

Question 21 asks, “Should [DOL’s electronic delivery guidance] be modified such that their continued use by plans is conditioned on access in fact?’ To require a plan administrator to monitor electronic access is as ridiculous as requiring a plan administrator to confirm that a participant opens and reads paper mail.” 

“Congress’ directions to the Secretary in section 338 are both specific and limited,” Foxx concluded. “Section 338 does not authorize or contemplate the ill-conceived regulatory overreach foreshadowed in the RFI. DOL must limit its regulatory amendments to those Congress specified in section 338.” 

EBSA issued the RFI in August, the purpose of which is “to inform future action by the Department on certain SECURE 2.0 mandates related to ERISA’s reporting and disclosure provisions.”

It includes questions about several distinct SECURE 2.0 provisions, including pooled employer plans (PEP), emergency savings accounts, and defined contribution fee disclosure improvements.

The American Retirement Association is submitting comments in response to the RFI. 

To read Foxx’s full letter, click here.