On September 18, on a 51 to 47 vote, the Senate confirmed President Trump’s nominee, Dan Aronowitz, to head the Employee Benefits Security Administration (EBSA). EBSA is the Department of Labor (DOL) agency that oversees the ERISA provisions applicable to retirement savings plans.

Nominated some seven months ago but hung up in the now-defunct Senate Democratic slow-walk of all Trump nominees, Aronowitz last February at his confirmation hearing told Senators that has three goals for EBSA. They are:

1. Reforming and improving EBSA’s enforcement of the rules governing fiduciary duty
2. Providing regulatory clarity
3. Encouraging plan sponsors to expand retirement and health care benefits to American workers

The new assistant secretary of labor must tackle a packed agenda, including both litigation and regulation on the fiduciary rule, implementation of the President’s executive order mandating that DOL/EBSA reexamine fiduciary rules to allow fiduciaries to include (within fiduciary rule requirements) “alternative assets” (including lifetime income annuities, cryptocurrency, and private investment funds, among others), rules implementing SECURE 2.0 rules, new ESG (environmental, social and governance) rules, ESOP rules and others.

Aronowitz brings a financial services background to his job as head of EBSA. Previously he served as President of Euclid (now Encore) Fiduciary, a fiduciary liability insurance underwriting company.

Prospects: With Aronowitz at the head of EBSA, Washington insiders anticipate rules that give more weight to plan sponsor concerns than has been the case in recent years. Of particular interest to NAIFA members is the potential for a less burdensome fiduciary duty rule.

NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org