50 senators challenge Biden's new rule on 401Ks, retirement plans

WASHINGTON, D.C. (WBOY) – U.S. Senators Joe Manchin (D-WV) and Shelley Moore Capito (R-WV) announced on Wednesday that half of the United States’ current senators are joining them in challenging a new policy that they said would politicize Americans’ retirement savings.

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50 senators challenge Biden’s new rule on 401Ks, retirement plans

President Joe Biden added a rule in late 2022 that allows Employee Retirement Income Security Act (ERISA) retirement plan fiduciaries to take environmental, social and corporate governance (ESG) factors into account when making investments. Previously, investment decisions had to be based solely on the best chance for a return.

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According to a release from Sen. Manchin, this could affect the 401Ks and other retirement plans of 152 million American workers.

“At a time when our country is already facing economic uncertainty, record inflation and increasing energy costs, it is irresponsible of the Biden Administration to jeopardize retirement savings for more than 150 million Americans for purely political purposes,” said Sen. Manchin in the release. 

“Americans who work today and save for tomorrow need to optimize their returns to afford life in retirement. Political agendas like Joe Biden’s ‘woke’ ESG requirements pressures financial experts to shift potential gains away from American retirees and into Joe Biden and the Department of Labor’s political projects,” said Sen. Capito in the release.

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This isn’t the first negative feedback that the rule has received; last week, attorneys general from 25 states, including West Virginia, sued the U.S. Department of Labor over the rule.

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