Oct. 23, 2015, Fairfax,Va.—Americans for Limited Government President Rick Manning today issued thefollowing statement in opposition to so-calledsocially responsible investing being included in 401(k)s by the U.S. LaborDepartment:
"The only criteria fiduciaries should use for 401(k) and pension funds is the suitability and profitability of an investment. The goal of these funds is to provide retirement security for workers, and the Labor Department's newly issued interpretation that allows so-called socially responsible investing, to be a factor in these investment decisions is nothing less than playing politics with retirement funds. Look no further than the inclusion of the SEIU's CFO in Secretary Perez' media announcement and it is clear that this is a political play and not a financially sound one. If Perez was honest, he would have confronted the SEIU about their failure to protect union member pensions, as two of their localpension funds are one and two on the Labor Department's Critical Status Notices, and are at risk of failing.
"The ObamaAdministration's attempt to turn retirement dollars into a slush fund for whatever the liberal cause of the moment is, sets a dangerous course for everyA merican who wants assurance that the options they are provided are based upon likelihood of success, and not a veiled attempt to funnel money to far left or politically favored companies.
"Prior to the announced changes, so-called socially responsible investments were allowed if they were equal to other investment options in terms of potential return. Now, Perez is turning this on its head with language suggesting that fiduciaries are to consider this, not just as collateral factors, but as the 'proper components of the fiduciary's primary analysis.' Americans for Limited Government willuse every lever at our disposal to overturn this disastrous and dangerous decision."
Americans for Limited Government is a non-partisan, nationwide network committed to advancing free market reforms, private property rights and core American liberties. For more information on ALG please visit our website at www.GetLiberty.org.