Obama Wants Better Retirement Benefits Plans for Americans

President Obama and the Democrats are working hard to ensure that the common American citizens are not cheated by the financial brokers when they are seeking a good retirement benefits plan. The Republicans argue that the financial brokers already deal with so many rules and the new rules would force them to get rid of main clients and small businesses.

Obama to use Veto for Retirement Benefits

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It is also being speculated that the President may use his veto power to ensure that the Labor Department rule on retirement benefits advice is passed. He may be forced to use the veto power because the U.S senate has voted against the bill. The debate on the passing of this bill stretched over the entire day on Tuesday.

The Rule

The rule that is proposed by the Obama government aims to set a fiduciary standard for financial brokers who are involved in selling retirement products. The new rule would make it mandatory for them to put clients’ best interests ahead of their own need to achieve the bottom lines. The arguments in the session mostly focused on whether the new bill would be in the best interests of the lower and middle-income workers or not.

Republicans’ Stand

The Republicans are against the bill because they think that the government is not taking into account the fact that there are already so many rules in place that need to be abided by the financial advisors. The Republicans also think that this rule would be very expensive for brokers. If this rule is imposed upon them, it may force them to let go of the small businesses that offer 401(k) plans and the Main Street clients.

Democrats’ Viewpoint

The Democrats are of the opinion that imposing this new rule is vital for ensuring that the profit-hungry financial advisers don’t exploit middle- and lower-class workers anymore. They do that currently by recommending those retirement products that are profitable for them rather than their clients.

The Statements

Johnny Isakson, a Georgia Senator stated that the rule is a solution which is seeking a problem. His fellow, Lamar Alexander, a Tennessee Senator added that the rule should be renamed as only the rich retire rule.

Democrats were not behind in making statements too. New Jersey Senator, Cory Booker said that the new rule will help people to retire with dignity. It will also ensure that people don’t worry whether their financial adviser offering advice on retirement benefits would lead to exploitation or not.