November 23, 2022

Brad Campbell Provides Insight on DOL Final Rule on ESG Investments With PLANADVISER and PLANSPONSOR

In “DOL Rule Greenlights ESG, But Questions Remain” and “ESG Is Now Permissible, But Not Required, Under ERISA,” PLANADVISER and PLANSPONSOR turned to benefits and executive compensation partner Brad Campbell for his commentary on the United States Department of Labor’s final rule on environmental, social and governance (ESG) investment in ERISA-governed plans.

Regarding the new rule, which allows plan sponsors to include investment menu options that take participants’ non-financial interests and preferences into account, Campbell said it is unclear if a sponsor should wait for explicit requests or if it should send out surveys to gauge participant interest in certain funds.

Campbell explained that the perceived neutrality of the final rule, as opposed to the proposal, makes it less likely to be revoked or significantly modified by a future Republican administration. He added that this depends in part on who the next Republican president might be, as having already tried to remove ESG considerations from ERISA plans, former President Trump could do so again if elected in 2024.

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