ARLINGTON, VA, (October 13, 2021) — The American Retirement Association, the nation’s leading advocacy organization of retirement plan professionals and plan sponsors, enthusiastically supports today’s proposal by the Department of Labor that affirms a level playing field for investments with an environmental, social and governance (ESG) focus.
The proposed rule, “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” explicitly allows a consideration of ESG factors, while setting aside the previous administration’s final rules on the use of ESG factors in selecting plan investments – including a prohibition on considering ESG options as a qualified default investment alternative - and fiduciary duties regarding proxy voting.
“We are pleased that the DOL has established a level playing field for ESG investment considerations in retirement programs, consistent with ERISA’s requirement that plan fiduciaries’ decisions be first and foremost prudent, and in the best interests of plan participants and beneficiaries,” noted Brian Graff, CEO of the American Retirement Association. “We look forward to continuing to work with the Labor Department on an effective implementation of this much-needed clarity.”
About the American Retirement Association
The American Retirement Association, based in the Washington, D.C. area, is a non-profit professional organization established to empower retirement plan professionals who are dedicated to building a better retirement for Americans. The American Retirement Association is comprised of five premier retirement industry associations; the American Society of Pension Professionals & Actuaries (ASPPA), the American Society of Enrolled Actuaries (ASEA), the National Association of Plan Advisors (NAPA), the National Tax-deferred Savings Association (NTSA), and the Plan Sponsor Council of America (PSCA).
For more information, visit www.usaretirement.org.
Media Contact:
Nevin E. Adams, JD
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703.516.9300 Ext 114
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