PTE 2020-02 took effect in February of 2021 and a month later the department published the FAQs to provide more details about the rules. The lawsuit contends that since the DOL elected to issue FAQs rather than a formal rule proposal, the public did not get the opportunity to comment.
Borzi said that this lawsuit could have a significant impact on the way that the department issues guidance and other such statements in the future.
“They want to be helpful to the industry,” she said. “People come in and they ask questions, but if every answer they give results in another lawsuit, that can be counter-productive.”