Senate Votes to Disapprove Department of Labor's Final Rules on ERISA Fiduciaries and Best Interest Contract Exemption

We are issuing the latest update to our recent Alerts regarding the final rules issued by the Department of Labor (“DOL”) with respect to fiduciaries under the Employee Retirement Income Security Act of 1974 (“ERISA”) and the DOL’s Best Interest Contract Exemption (“BICE”) from ERISA’s prohibited transactions provisions as well as Congress’s attempt at blocking implementation of the ERISA fiduciary rule and BICE. On May 24, 2016, the Senate passed the joint resolution previously passed by the House of Representatives disapproving DOL’s fiduciary rule and BICE pursuant to the Congressional Review Act. The vote on the joint resolution was 56 to 41. The joint resolution of disapproval now goes to President Obama, who has pledged to veto it. Once the President vetoes the Congressional joint resolution, it is expected that Congress will seek to override the veto. However, as we have noted in our previous Alerts, it is doubtful that House and Senate leaders will be able to get enough votes for the two-thirds majority necessary to override the veto.