WASHINGTON, DC – November 22, 2022 – The following statement regarding the U.S. Department of Labor’s (DOL) Final Rule titled, “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights,” released today may be attributed to Andy Banducci, Senior Vice President of Retirement and Compensation Policy at The ERISA Industry Committee (ERIC):
“ERIC has long urged regulators to provide retirement plan fiduciaries with clear and consistent rules on retirement plan investment selection. We warned DOL last year that its proposal threatened to create confusion by unduly emphasizing specific factors for fiduciaries to consider, by creating an unnecessary tiebreaker rule, and by leaving significant operational questions unanswered.
“The regulations released today partially respond to these concerns. DOL clarified that the final rule does not establish a mandate to consider any specific factor in every circumstance or put a thumb on the scale when selecting investments, leaving fiduciaries to manage plans for the best interests of workers and retirees.
“While DOL retained the proposal’s confusing tiebreaker rule, it removed an unnecessary and burdensome documentation requirement. We are continuing to review this complex final regulation with our member companies and will urge DOL to further clarify and provide flexibility as necessary.”
ERIC member companies sponsor and maintain retirement plans for millions of their workers and retirees. They supervise billions of dollars in retirement assets in accordance with their obligations under the Employee Retirement Income Security Act. ERIC advocates for clear, workable, consistent, and enduring rules that reflect the long-established principles of fiduciary standards for selecting retirement plan investments.
ERIC’s December 2021 comment letter detailing concerns with the proposed regulation may be accessed here.