A coalition of 25 states is suing the Biden administration over a Department of Labor (DOL) rule that affects millions of retirement accounts, the attorneys general of multiple states involved in the lawsuit announced on Wednesday.
The new rule set to take effect on Jan. 30 allows 401(k) managers to invest clients’ money in environmental, social, and governance (ESG) funds, a move that 25 states argue violates the Employee Retirement Income Security Act of 1974 (ERISA).
