Plan Participants Richard Braun an employee at SWAT Environmental, and Frederick Luehrs III, an employee at Petron Corp., have filed suit recently in U.S. District Court in Milwaukee. The plaintiffs alleges the Labor Department is out of line when they made a new ESG ruling in November.
The plaintiffs filed a legal challenge hoping to overturn the DOL’s rule permitting retirement plan fiduciaries to consider ESG Factors (such as: climate change, environmental, social and governance factors when selecting retirement plan investments and voting shareholder interests.
Fred Barstein of WealthManagement.com ‘s RPA Edge identifies this case as one of the most important stories from the prior week. ESG rules become complicated when the interests in the investment results are bifurcated. This case is straight forward…
In the case— Braun et al. v. Walsh — the plaintiffs, argue that the new rule hurts participants.
Stay tuned for what occurs next in the seemingly endless saga of ESG impact on retirement plans and plan participants.