Rep. Rick Allen (R-Ga.) introduced legislation requiring financial advisers investing Americans’ retirement savings to prioritize financial returns over environmental, social, and governance (ESG) factors.
The legislation, introduced to the Committee on Education and the Workforce, states that “a fiduciary of a plan shall be considered to act solely in the interest of the participants and beneficiaries.”
The lawmaker’s bill outlines several key provisions to prioritize the protection of the earnings of Americans to deal with the rules put in place by the current administration in dictating how investment decisions are made.
“By empowering financial advisers to invest Americans’ retirement savings in risky, climate-related ESG funds, the Department of Labor (DOL) is blatantly prioritizing its radical political agenda over Americans’ hard-earned savings.”
“Today’s rule clarifies that retirement plan fiduciaries can take into account the potential financial benefits of investing in companies committed to positive environmental, social, and governance actions as they help plan participants make the most of their retirement benefits,” former Secretary of Labor Marty Walsh said at the time.
“Removing the prior administration’s restrictions on plan fiduciaries will help America’s workers and their families as they save for a secure retirement.”
The DOL rule came following a May 2021 executive order that directed the federal government agencies to “protect the life savings and pensions of America’s workers and families from the threats of climate-related financial risk.”
Assistant Secretary for Employee Benefits Security Lisa M. Gomez stated, “Climate change and other environmental, social, and governance factors can be useful for plan investors as they make decisions about how to best grow and protect the retirement savings of America’s workers.”
Mr. Allen asserted that he believes President Joe Biden’s administration’s rules on investing are an overreach of government and irresponsible for Americans struggling to meet expenses.
“That is why I am proud to introduce the RETIRE Act, which will roll back President Biden’s overreaching rule and codify that retirement plan sponsors must make investment decisions based on financial returns,” he said.
“Under so-called ‘Bidenomics,’ Americans are struggling to afford basic necessities like gas and groceries. The last thing hardworking taxpayers need is for their retirement savings to be depleted due to politically motivated mismanagement. The RETIRE Act would right this wrong and ensure Americans have a say in their financial future.”
The White House did not immediately respond to The Epoch Times’s request for comment.
The company reported that this year, 359 environmental and social proposals were filed by U.S. shareholders, an almost 25 percent increase over 2022.
