The Biden DOL Rule Puts Social Justice in Charge of Your Money

[excalibur]

The damage and potential damage to America under the Biden junta may never be undone. That is what the left wants. Create calamity.

Be very aware and wary that the Biden administration plans to put political green energy lobbies and social justice judges in charge of your personal investment portfolios and retirement savings.

Earlier this month, the Labor Department proposed a new rule that will direct pension plans and asset managers to account for politically progressive factors termed Environmental, Social, and Governance scores (ESG) in determining 401(k) retirement plan decisions. Such woke considerations will include assessments of impacts on workforce diversity, climate change, and investments in sanctioned “green” energy projects.

The proposed new Labor ruling scraps and reverses a Trump administration proviso within the Employee Retirement Income Security Act (ERISA) implemented last fall requiring retirement plan fiduciaries to act “solely in the interest” of participants and based upon a “material effect on the return and risk of an investment.”

The rule effectively barred plans from automatically placing unknowing workers who don’t select a 401(k) fund option into a default ESG fund with higher fees.

In contrast, the proposed Biden DOL rule “makes clear that climate change and other ESG factors are often material,” and thus in many instances should be considered “in the assessment of investment risks and returns.”

According to the revised ERISA rule-making interpretation, a fiduciary’s duty may “often require an evaluation of the effect of climate change and/or government policy changes” such as electric vehicle mandates on an investment.


In other words, retirement plan sponsors won’t merely be allowed to prioritize climate and social factors in how they invest; they can be sued if they don’t comply. Plan holders, on the other hand, won’t get much say because option managers won’t be required “to solicit preferences” on ESG.

There’s little wonder that big Biden administration boosters like BlackRock, the world’s largest asset manager, is all-in on an ESG 401(k) bonanza where they can charge heftier fees.

According to Morningstar, the asset-weighted average expense ratio of U.S. “sustainable” funds was 0.61% in 2020, compared to 0.41% for all open-ended mutual and exchange-traded funds, and 0.12% for passive funds … a difference that can reduce a typically modest retirement savings account by tens of thousands of dollars over a few decades.

As the Wall Street Journal editorial board concludes, “All of this amounts to a backdoor rewrite of ERISA, one of the better laws of the last 50 years. Progressives are moving across the Biden administration to steer private capital to implement an agenda they can’t pass through Congress.

...​

Biden DOL Rule Puts Social Justice in Charge of Your Money

We are witnessing an ideological totalitarian value-determinate trend very similar to this that is being imposed through a “Social Credit System” by the CCP...

www.americaoutloud.com

 

[excalibur]

Biden’s new 401(k) rule threatens to funnel workers’ retirement funds into ‘woke’ causes

A rule quietly proposed by the Biden administration would allow companies to consider factors such as climate change, diversity issues and even political donations when selecting employees’ 401(k) plans, potentially forcing workers to funnel some of their pay into “woke” causes.

www.washingtontimes.com

 

[TroglocratsRdumb]

The damage and potential damage to America under the Biden junta may never be undone. That is what the left wants. Create calamity.

​

Be very aware and wary that the Biden administration plans to put political green energy lobbies and social justice judges in charge of your personal investment portfolios and retirement savings.​

​

Earlier this month, the Labor Department proposed a new rule that will direct pension plans and asset managers to account for politically progressive factors termed Environmental, Social, and Governance scores (ESG) in determining 401(k) retirement plan decisions. Such woke considerations will include assessments of impacts on workforce diversity, climate change, and investments in sanctioned “green” energy projects.​

​

The proposed new Labor ruling scraps and reverses a Trump administration proviso within the Employee Retirement Income Security Act (ERISA) implemented last fall requiring retirement plan fiduciaries to act “solely in the interest” of participants and based upon a “material effect on the return and risk of an investment.”​

​

The rule effectively barred plans from automatically placing unknowing workers who don’t select a 401(k) fund option into a default ESG fund with higher fees.​

​

In contrast, the proposed Biden DOL rule “makes clear that climate change and other ESG factors are often material,” and thus in many instances should be considered “in the assessment of investment risks and returns.”​

​

According to the revised ERISA rule-making interpretation, a fiduciary’s duty may “often require an evaluation of the effect of climate change and/or government policy changes” such as electric vehicle mandates on an investment.​

​

​

In other words, retirement plan sponsors won’t merely be allowed to prioritize climate and social factors in how they invest; they can be sued if they don’t comply. Plan holders, on the other hand, won’t get much say because option managers won’t be required “to solicit preferences” on ESG.​

​

There’s little wonder that big Biden administration boosters like BlackRock, the world’s largest asset manager, is all-in on an ESG 401(k) bonanza where they can charge heftier fees.​

​

According to Morningstar, the asset-weighted average expense ratio of U.S. “sustainable” funds was 0.61% in 2020, compared to 0.41% for all open-ended mutual and exchange-traded funds, and 0.12% for passive funds … a difference that can reduce a typically modest retirement savings account by tens of thousands of dollars over a few decades.​

​

As the Wall Street Journal editorial board concludes, “All of this amounts to a backdoor rewrite of ERISA, one of the better laws of the last 50 years. Progressives are moving across the Biden administration to steer private capital to implement an agenda they can’t pass through Congress.​

​

...​

Biden DOL Rule Puts Social Justice in Charge of Your Money

We are witnessing an ideological totalitarian value-determinate trend very similar to this that is being imposed through a “Social Credit System” by the CCP...

www.americaoutloud.com

Left Wingers are thieves.
Their reasoning is >>> Why save for retirement when you can just steal from people who did.
Left Wing economics is based upon stealing