Labor rule on ESG already trimming fund options for retirement plans
Some retirement plan advisers have cut green investing options from 401(k) plans following Trump's last-minute rule change.
January 27, 2021
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The clock is ticking for the Biden administration to nullify Donald Trump’s restrictions on retirement plan fiduciaries, rules by which the Republican sought to limit their ability to direct money into environmental, social and governance funds.
Trump’s Department of Labor moved earlier this month to adjust the Employee Retirement Income Security Act of 1974 (ERISA) to require those overseeing pension and 401(k) plans to always put economic interests ahead of so-called nonpecuniary goals. It was seen as a direct attack on ESG and green investing (though they have become more profitable of late).