US Labor Department scraps rule that would have made insurance companies liable for pension assets

The US Labor Department has withdrawn a rule that would have changed how insurance companies handle pension plan assets. This means insurers will not face new requirements to separate certain pension funds from their general accounts.

This rule would have made insurance companies directly responsible for how they manage certain pension investments, treating them as 'plan assets' under federal law. That would have meant more liability for insurers and potentially higher costs for pension plans. By withdrawing the rule, the Labor Department avoids a major fight with the insurance industry and keeps the status quo for how these assets are handled.