House Democrats reintroduce sustainable investing bills

By Brian Croce Source: Pensions & Investments A group of House Democrats reintroduced two bills that would require retirement plan fiduciaries and investment advisers to take into account and explain how they consider environmental, social and governance factors when making investment decisions. The Sustainable Investment Policies Act, which would amend the Investment Advisers Act, and the Retirees Sustainable Investment Policies Act, which would amend the Employee Retirement Income Security Act, stipulate that investment advisers and retirement plan fiduciaries must [...]

Bill seeks to clarify ESG responsibilities under ERISA

By Brian Croce Source: Pensions & Investments Democrats in the Senate and House introduced a bill Thursday that would amend ERISA to make clear that retirement plans may consider ESG factors in their investment decisions and that ESG investments are permitted as qualified default investment alternatives in ERISA-covered plans. Under the bill — the Financial Factors in Selecting Retirement Plan Investment Act, sponsored by Sens. Tina Smith, D-Minn., and Patty Murray, D-Wash., and Rep. Suzan DelBene, D-Wash. — plans [...]

2021-05-21T09:39:14-07:00May 21st, 2021|Categories: ESG|Tags: |

DC Plans More Vulnerable to ERISA Litigation Than DB Plans

Source: AI-CIO.com Defined contribution (DC) retirement plans are far more susceptible to Employee Retirement Income Security Act (ERISA) lawsuits than defined benefit (DB) plans, lawyers argue in a lawsuit filed against The Wesco Distribution Inc. Retirement Savings Plan. “The potential for imprudence is much greater in defined contribution plans than in defined benefit plans,” said the lawsuit. The complaint, which alleges Wesco neglected its fiduciary duties by allowing excessive fees, said that companies with DC plans are much more [...]

2021-05-13T08:05:23-07:00April 21st, 2021|Categories: ERISA|Tags: , , |

Biden team to review Labor Department ESG rule

The Biden administration will review a recent Department of Labor rule stipulating that ERISA plan fiduciaries cannot invest in "non-pecuniary" vehicles that sacrifice investment returns or take on additional risk. In his first few hours in office Wednesday, President Joe Biden signed a flurry of executive orders, including one titled "Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis." In the order, Mr. Biden directed all executive departments and agencies "to immediately review and, [...]

2021-01-21T13:53:40-08:00January 21st, 2021|Categories: ESG|Tags: , , |

Labor Department names new ERISA Advisory Council members

The Department of Labor on Tuesday appointed five members to its ERISA Advisory Council. It also announced that Glenn Butash will remain chairman of the 15-member council in 2021, a position he's held since July, and James Haubrock will serve as vice chairman. Mr. Butash is managing counsel for U.S. compensation and benefits at Nokia Corp., where he provides legal advice in connection with the design and operation of large, complex defined benefit, defined contribution and welfare benefit plans. [...]

2021-01-20T11:18:16-08:00January 20th, 2021|Categories: ERISA|Tags: , |

DOL proposal could hurt prospects for ESG in ERISA plans

A proposal from the Department of Labor stipulates that ERISA plan fiduciaries cannot invest in ESG vehicles that sacrifice investment returns or take on additional risk, which sources say could curb environmental, social and governance investments. "Private employer-sponsored retirement plans are not vehicles for furthering social goals or policy objectives that are not in the financial interest of the plan," Labor Secretary Eugene Scalia said in a news release. "Rather, ERISA plans should be managed with unwavering focus on [...]

2020-06-26T14:53:25-07:00June 26th, 2020|Categories: ERISA, ESG|Tags: , , |
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