excalibur
Diamond Member
- Mar 19, 2015
- 21,533
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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 âgreenâ 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 âsolely in the interestâ of participants and based upon a âmaterial effect on the return and risk of an investment.â
The rule effectively barred plans from automatically placing unknowing workers who donât select a 401(k) fund option into a default ESG fund with higher fees.
In contrast, the proposed Biden DOL rule âmakes clear that climate change and other ESG factors are often material,â and thus in many instances should be considered âin the assessment of investment risks and returns.â
According to the revised ERISA rule-making interpretation, a fiduciaryâs duty may âoften require an evaluation of the effect of climate change and/or government policy changesâ such as electric vehicle mandates on an investment.
In other words, retirement plan sponsors wonât merely be allowed to prioritize climate and social factors in how they invest; they can be sued if they donât comply. Plan holders, on the other hand, wonât get much say because option managers wonât be required âto solicit preferencesâ on ESG.
Thereâs little wonder that big Biden administration boosters like BlackRock, the worldâs 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. âsustainableâ 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, âAll 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 canât pass through Congress.
...
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 âgreenâ 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 âsolely in the interestâ of participants and based upon a âmaterial effect on the return and risk of an investment.â
The rule effectively barred plans from automatically placing unknowing workers who donât select a 401(k) fund option into a default ESG fund with higher fees.
In contrast, the proposed Biden DOL rule âmakes clear that climate change and other ESG factors are often material,â and thus in many instances should be considered âin the assessment of investment risks and returns.â
According to the revised ERISA rule-making interpretation, a fiduciaryâs duty may âoften require an evaluation of the effect of climate change and/or government policy changesâ such as electric vehicle mandates on an investment.
In other words, retirement plan sponsors wonât merely be allowed to prioritize climate and social factors in how they invest; they can be sued if they donât comply. Plan holders, on the other hand, wonât get much say because option managers wonât be required âto solicit preferencesâ on ESG.
Thereâs little wonder that big Biden administration boosters like BlackRock, the worldâs 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. âsustainableâ 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, âAll 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 canât 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 âSocial Credit Systemâ by the CCP...
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