Employee Benefits and Executive Compensation Update
Just When You Thought Voting Questions Were Over: U.S. Department of Labor Changes Rules on Proxy Voting for ERISA Fiduciaries
December 17, 2020
Share
On December 11, 2020, the U.S. Department of Labor (DOL) issued its final rule, which amends its 1979 investment duties regulation under the Employee Retirement Income Security Act of 1974, as amended (ERISA), to add new rules for plan fiduciaries to follow when voting proxies or exercising other shareholder rights on behalf of ERISA plans. This rule was proposed on September 4, 2020, and is consistent with the DOL’s recent guidance requiring plan fiduciaries to focus on “pecuniary factors” when making investment decisions for ERISA plans.