Edward A. Wodarczyk, Esq., ewodarczyk@tuckerlaw.com, 412-594-3920
On June 23, the DOL released proposed regulations for retirement plans for “socially responsible” investments that are also called environmental, social and governance (ESG) investments. The proposed standards require plan fiduciaries to select plan investments based on relevant financial considerations. The proposal indicates that plan fiduciaries may not choose ESG investments that sacrifice investment returns or include additional financial risk and must consider other available investments to meet their ERISA responsibilities. The proposed rules appear to be more restrictive than past guidance. For more, see https://www.pionline.com/.