Department of Labor (“DOL”) Fiduciary Rule Update

A new fiduciary 4.0 rule proposal has been submitted by the Department of Labor (DOL) as of October 31, 2023. As a result of the Department’s specific focus on insurance products, including fixed indexed annuities, we are disappointed. The Biden Administration’s statement stating that state insurance laws do not adequately protect consumers and their retirement savings surprised us. We remain proud of our fixed indexed annuities and the benefits they provide to our customers. This is especially important during this period of volatile and uncertain markets.

It is important to note that this is only a proposed rule, which includes a comment period. As the implementation of the final rule does not expect to occur for months, this should not immediately affect your business practices. Nevertheless, we will continue to work closely with industry trade groups to evaluate the potential impact of the proposed rule and determine our next steps, including whether judicial review is necessary when the rule becomes final.

What you need to know

• Your business practices do not need to change at this time, and you can continue to submit business as normal.
• The proposed rule will have a “comment period” where the text of the proposed rule can be reviewed, and National Life, along with other carriers and industry groups, can comment on the industry’s behalf.
• This DOL regulation does not apply to non-ERISA plans meaning there will generally be limited impact to 403(b)/457(b) business.

As we review the proposed rule and the potential business practice changes, we will keep you up to date on any action you may need to take.