Rep. Neal pushes for bill supported by biggest campaign contributor
Rep. Richard Neal is facing criticism for sponsoring legislation that would benefit MassMutual, the insurance company that doubles as his biggest source of campaign money, The Boston Globe reports.
The proposed bill comes in contrast to new reforms pushed by the Obama administration that the White House says would prioritize middle class investors over Wall Street brokers. The White House, and allies like Sen. Elizabeth Warren of Massachusetts, say that financial brokers push investors to sign up for retirement plans that they know have higher costs and lower returns.
White House officials say these hidden fees can cost lower and middle class investors up to $17 billion a year.
In contrast, Neal’s bill would introduce a “watered-down’’ version of those reforms, the Globe reports. The bill is supported by the major insurance and financial companies in the U.S., including MassMutual, one of the biggest employers in Neal’s district.
Neal, who was first elected to Congress in 1988, said MassMutual’s presence in his district was an influence, but said he has been working on retirement issues for years.
“I want the Labor Department to come up with a rule that’s workable,’’ Neal told the Globe, calling the current draft, “cumbersome and overly complicated and is going to drive people away from retirement advice that need it.’’
You can read the full story at The Boston Globe.
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