5 11, 2020

DOL, Dubious About ESG Pension Investing, Cuts It a Bit of Slack in Final Rule

2020-11-05T15:48:37-08:00November 5th, 2020|Categories: ESG|Tags: , |

The Department of Labor (DOL) on Friday eased its stance a small amount against environmental, social, and governance (ESG) investing, but it remained determined in its declaration in a final rule that Employee Retirement Income Security Act (ERISA) plan fiduciaries must make investment decisions that won’t sacrifice returns. In June, the DOL proposed a rule that determined employer-sponsored plans have a sole fiduciary duty to beneficiaries, not to social causes advanced through ESG investing. The proposal proved to be [...]

30 10, 2020

DOL walks back ESG language in final rule

2020-10-30T14:09:10-07:00October 30th, 2020|Categories: ESG|Tags: , |

The Department of Labor unveiled a final rule Friday stipulating that ERISA plan fiduciaries cannot invest in “non-pecuniary” vehicles that sacrifice investment returns or take on additional risk, though the final rule focused less on ESG than the proposal on which it was based. The rule was proposed in June and drew harsh criticism from the retirement community, including claims that the Labor Department did not sufficiently justify its reasoning behind the proposal and concerns that the proposal would [...]

28 10, 2020

Why millennials will win Trump’s war on socially responsible investing

2020-10-28T09:42:08-07:00October 28th, 2020|Categories: Socially Responsible Investment|Tags: , |

The United States Department of Labor (DOL) spent the summer declaring war on socially responsible investing. Under current Labor Secretary Eugene Scalia, DOL took two huge steps to crush so-called “ESG” — environmental, social, and governance investing. The first, smaller, mostly procedural step took place in June with a move that would sharply increase the paperwork and regulatory burdens on ESG investors. The second, more brazen step took place just before Labor Day, when DOL proposed a rule change designed [...]

11 08, 2020

Industry sounds off against DOL proposal on ESG

2020-08-11T09:39:33-07:00August 11th, 2020|Categories: ESG|Tags: , |

A Department of Labor proposal that would likely curb environmental, social and governance investments in ERISA plans has drawn sharp criticism from the retirement community. In a 30-day comment period that concluded July 30, stakeholders roundly admonished the Labor Department's proposal to add regulatory text that makes clear that ERISA requires plan fiduciaries in both private defined benefit and defined contribution plans to select investments "based on financial considerations relevant to the risk-adjusted economic value of a particular investment [...]

26 06, 2020

DOL proposal could hurt prospects for ESG in ERISA plans

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

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 [...]

25 03, 2014

Helping DB, DC and 403(b) Plans Comply with ERISA

2014-03-25T17:31:37-07:00March 25th, 2014|Categories: 401(k), Defined Benefit Plans|Tags: , , , , , |

Financial and retirement services provider Prudential has released a checklist to help plan sponsors of defined benefit (DB), defined contribution (DC) and 403(b) retirement plans to better comply with the Employee Retirement Income Security Act (ERISA). “We know how important it is for plan sponsors to comply with ERISA and the ever-changing reporting and disclosure requirements mandated by the federal government,” say the authors of Prudential’s Compliance Checklist for 2014. “The checklist incorporates DB, DC and 403(b) requirements and [...]

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