WASHINGTON – U.S. Senator Roger Wicker, R-Miss., joined his Republican colleagues in introducing legislation to strengthen Americans’ retirement funds. Led by Senator Mike Braun, R-Ind., the Maximize Americans’ Retirement Security Act would clarify the fiduciary duty of plan administrators to select and maintain investments based solely on financial factors.
Recently, the Department of Labor proposed a rule that would allow plan administrators to invest in so-called “environmental, social and governance” (ESG) funds by considering factors not tied to their return on investment. A number of studies have shown that ESG investing policies offer worse return rates in comparison to other investment plans, while ESG investors also generally end up paying higher costs for worse performances.
“Most Americans trust their retirement plan administrators to look out for them and maximize their return on investments, but recent moves by the Biden Administration threaten to upend this longstanding system in favor of “woke” activism,” Wicker said. “Retirement accounts should be off-limits to the President’s politics.”
“At a time when energy costs are soaring and Hoosiers are grappling with record high inflation, Democrats are politicizing American retirement funds and targeting companies that invest in energy sources that could help alleviate these soaring costs. The Biden Administration should not be sacrificing the retirement savings of thousands of individuals to promote liberal policy objectives,” Braun said.
This legislation would amend the Employee Retirement Income Security Act (ERISA) to require plan fiduciaries to select investments solely on pecuniary factors. It has been endorsed by Americans for Tax Reform, Institute for the American Worker, Foundation for Government Accountability, and FreedomWorks.
In addition to Wicker and Braun, co-sponsors include Senators Richard Burr, R-N.C., Tommy Tuberville, R-Ala., Cynthia Lummis, R-Wyo., and Roger Marshall, R-Kan.
The full text of the bill can be found here.