DOL Wants to Pause Fiduciary Rule Case Through October

The Department of Labor has asked the U.S. 5th Circuit Court of Appeals to extend a pause before it considers two consolidated appeals over the agency’s Retirement Security Rule and related regulatory amendments.

The motion, filed August 14, seeks an additional 60-day abeyance, through October 14, to give the department more time to determine how to proceed. The department previously sought two consecutive 60-day delays, prior to the current request.

The cases involve challenges to a rule altering the test for when an individual qualifies as a “fiduciary” to a plan governed by the Employee Retirement Income Security Act. The changes addressed when a person is considered to be “rendering investment advice for a fee or other compensation” in relation to plan assets. Issued under former President Joe Biden, two federal district courts issued universal stays of the rule’s effective date in 2024, and the government had appealed both rulings.

Following the January 20 change in presidential administration, the Department of Labor came under new leadership. In April, the 5th Circuit agreed to put the appeals on hold to allow new officials to review the regulatory actions and issues at stake. The court previously had extended the pause for 60 days in June.