Just when retirement plan participants all across the country are opening their year-end statements and learning the true extent of the damage to their accounts, we have a new president take office and, as is customary, put a delay on all new final regulations pending review by the new administration. The specific regulation in question here is the final rules regarding investment advice for retirement plan participants. In addition, Congressman George Miller, chairman of the House Education and Labor Committee has indicated strong opposition to the rules and said he will work to block implementation of the rules as written.

Spectrem Group has been conducting market research among plan participants for more than 15 years. One finding from this research that have been consistent over that time is that many participants want advice and help with making the decisions about how to invest their retirement savings and their preferred approach for getting this help is face-to-face with a financial advisor. The Pension Protection Act of 2006 sanctioned the delivery of investment advice in this way. A plan sponsor could enter into an arrangement with a "fiduciary investment advisor" and make advice available to participants subject to certain rules. To date, less than one-quarter of plan sponsors have added this type of investment advice program to their plans. Other provisions of the act, automatic enrollment in particular, have seen much a greater adoption rate. The lack of final regulations would appear to be at least part of the reason for the lower adoption of investment advice.

There may be very good reasons for looking at the final rules on investment advice again. Congressman Miller may have a better answer. But in the meantime, participants have to figure out how to address the losses they have suffered to date on their own. Somebody needs to get moving. Once the final rules are in place, plan sponsors are more likely to offer an advice program in their plans and participants will be able to get the assistance they want.

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