By Angela Carter, Register Staff

The U.S. Department of Labor Friday announced two new rules meant to protect workers’ 401(k), pension and other retirement savings vehicles, during a forum held by Vice President Joe Biden.

The announcement was part of the White House Middle Class Task Force’s year-end report released at the event. The report presents policy solutions to challenges such as retirement security and the need to create high-quality jobs for middle-class workers.

It details the group’s work over the past year.

U.S. Deputy Secretary of Labor Seth Harris said Friday that when Americans retire safely they can remain in the middle class.

The first rule is not yet final, but is designed to ensure that employees receive unbiased advice about how to invest in 401(k) plans or individual retirement accounts and to prevent steering to certain products.

“The adviser has to be looking out for the workers’ financial security, not their own personal interest,” Harris said.

Investment advisers also would have to disclose their fees, and computer models used to offer advice would have to be certified as objective and unbiased.

The Department of Labor estimates that 2 million workers and 13 million IRA holders would benefit from this rule to the tune of $6 billion, Harris said.

The Labor Department is accepting comments on the proposal online at www.regulations.gov or by e-mail at

e-ORI@dol.gov. Continued...

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The second rule goes into effect in April and sets guidelines on the disclosure of financial information requested by workers participating in multi-employer retirement plans — those collectively bargained by unions and groups of employers.

Workers must be given information to monitor the “actuarial health,” Harris said, and day-to-day operations of their investments.

Middle Class Task Force Executive Director Jared Bernstein said policy items addressed in the report include a bigger child care tax credit, help for families caring for seniors and loved ones with disabilities, investing in clean energy manufacturing and protecting unemployment insurance programs.

Separately, however, the U.S. Senate failed Friday to extend unemployment claim payments to laid-off workers and subsidies that help pay health premiums while they are out of work.

U.S. Sen. Christopher J. Dodd, D-Conn., lashed out, saying hundreds in Connecticut stand to lose benefits Monday because of partisan delay tactics.

“This is exactly why Americans have lost faith in their government — because they see elected officials playing cheap politics at the expense of real families who are hurting,” he said.

Contact Angela Carter at 203-789-5752 or acarter@newhavenregister.com.

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