The Biden administration has quietly finalized a rule allowing employers to funnel workers' 401(k) funds into investments that support causes that address issues such as climate change and diversity. The Labor Department approved the rule last week, just two days before the Thanksgiving break. It will affect roughly 150 million workers and $10 trillion in assets covered under the Employee Retirement Income Security Act of 1974.
The rules also remove a restriction blocking employers from using an ESG fund as a default option for workers automatically enrolled in 401(k) plans.
- It also rescinds Trump-era regulations that require retirement plan administrators and asset managers to choose investments based solely on participants' financial interests.
Republicans say it's a coordinated effort by money managers to invest Americans' retirement funds into woke causes
- In November, a group of Republican lawmakers sent letters to 51 law firms across the country warning that investments in ESG issues could run afoul of antitrust laws.
- Republicans say asset managers are collaborating to shift investments toward ESG companies, thus making it difficult for oil and gas companies to raise capital.
No comments:
Post a Comment