Hearings are expected to commence soon on a new bill that would allow retirement plan providers to offer advisory services to plan participants, something that is largely prohibited now. Representative John Boehner (R-Ohio), chairman of the House Committee on Education and the Workforce introduced the bill, called the Retirement Security Advice Act, last month.
The bill would amend the 1974 Employee Retirement Income Security Act (ERISA). Since then, there have been substantial changes in the retirement plan world, most notably in the growth of defined contribution plans. Allowing plan providers to offer investment advice is something that participants want and increasingly need, according to the Investment Company Institute, which fully supports the proposed legislation.