Credit Ratings Purge in Retirement Exemptions Clears White House

June 17, 2021, 2:26 PM

The White House has released several U.S. Labor Department rule changes that strip some exemptions in private-sector retirement policy of explicit references to credit ratings, signaling the last step before those regulations are codified.

The Labor Department is seeking to end industry reliance on credit ratings in a slate of legal exemptions it grants companies handling retirement assets—part of a cleanup effort the federal government began more than a decade ago after the 2008 financial crisis.

The DOL’s Employee Benefits Security Administration first proposed the amendments in 2013. The proposal would remove explicit references to “credit ratings,” financial risk evaluations ...

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