UPDATE 1-Biden to unveil new rules on US retirement savings

* Biden to present middle-class task force report

* Rules to protect workers from conflicts of interest
(Adds details)

WASHINGTON, Feb 26 (BestGrowthStock) – U.S. Vice President Joe
Biden will unveil on Friday rules to help protect workers’
retirement savings accounts as he delivers an annual report of
his middle-class task force, a White House official said.

With President Barack Obama’s popularity ratings down in a
congressional election year, his administration has sought to
focus more on middle-class voters’ concerns about high
unemployment, the ailing economy and their families’ troubled
finances.

Biden, who heads a year-old panel assigned to improve
middle-class living standards, will hold a ceremony at 10 a.m.
(1500 GMT) to announce new Labor Department regulations on
workers’ retirement savings.

“These new safeguards will protect workers from conflicts
of interest when it comes to financial advisers and their
401(k)s and IRAs,” the White House official said, referring to
widely used retirement savings plans.

Retirement investment advisers and money managers will only
be allowed to give advice if they do not get any commission for
steering workers into funds with which they are affiliated, or
if their advice is based on a computer model certified to be
unbiased by independent experts, the official said.

The Labor Department will make the proposed regulations
available for public comment until May 5, after which it will
issue a final rule.

Once that rule takes effect, the regulations will apply to
all financial institutions that both provide investment options
like 401(k)s to employers and offer financial advice to their
employees, extending new protections to tens of millions of
workers, the official said.

Over a year into his presidency, Obama has taken a more
populist turn in his rhetoric, pledging to fight for the middle
class and taking a tougher line toward Wall Street.

He is trying to halt an erosion of support among
middle-class Americans who helped sweep him into office and
whose backing is needed to prevent his Democratic Party from
suffering major losses in the November congressional
elections.

Investment Basics
(Reporting by Matt Spetalnick; Editing by Mohammad Zargham)

UPDATE 1-Biden to unveil new rules on US retirement savings