WASHINGTON — Sens. Braun, Hagerty, Lankford, Kennedy, and Burr have introduced a Congressional Review Act (CRA) resolution S.J. Res. 68 to nullify the Biden administration’s Department of Labor (DOL) rule that would encourage fiduciaries to support liberal policy priorities over maximizing Americans’ retirement security. Rep. Barr (R-Ky.) led the effort in the House of Representatives.
“When American workers invest in their retirement, they should be able to trust their financial advisors to be investing with their best interests in mind, not the interests of liberal activists. American retirement funds have already taken such a hit from Joe Biden’s failed economic policies, they should not be politicized. I am proud to lead my colleagues in this effort to overturn the Biden administration’s woke 401k rule and protect Americans’ retirement funds.” — Sen. Mike Braun
“President Biden’s attempt to use Americans’ retirement plans to bankroll the woke agenda is fiscally irresponsible and morally wrong. Congress must reject this rule before American families suffer even more just so that Biden can support the Left’s pet projects.” — Sen. John Kennedy
“Biden’s obsession with the Green New Deal should not be hurt Americans’ retirement savings. If Americans choose to use their retirement to invest in green energy that’s one thing, but the government should not force Americans to foot the bill of their progressive agenda.” — Sen. James Lankford
“By finalizing rulemaking allowing plan fiduciaries to consider ESG factors, Biden’s Department of Labor is steering capital away from the American energy sector, discriminating against oil and gas producers, driving up prices at the pump, and preventing investors from reaping returns from high-performing energy stocks.” — Rep. Andy Barr (R-Ky.)
Background
- In November, the Biden DOL finalized a rule, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, that would rescind a Trump era rule that focused on financial factors and replace it with a focus on environment, social, and corporate governance (ESG) factors when considering investments and shareholder proxy voting by fiduciaries.
- A number of studies have shown that ESG investing policies have worse rates of return. In comparison to other investment plans, ESG investors generally end up paying higher costs for worse performances.
- In July, Senator Braun introduced legislation to build a stronger retirement system for Americans by clarifying the fiduciary duty of plan administrators to select and maintain investments based solely on financial factors.
###
