Proposed Rules’ Quick Turnaround Could Open DOL to Challenges

Of all the big-ticket regulations the Labor Department hopes to push through before the end of the year, three in particular worry the retirement and benefits industry because of their short comment periods, which could leave the agency vulnerable to legal challenges.

The Employee Benefits Security Administration released three major proposals this summer that were deemed “significant” or “economically significant” and impact fiduciary responsibilities and benefits plans focused on environmental, social, and corporate governance funds—all of which come with a short, 30-day comment window. An “economically significant” rule has an estimated annual impact on the economy of $100 million or ...