Biden Administration Faces Lawsuit Over Disappearing Retirement Accounts

fizkes /
fizkes /

As people watch their retirement savings disappear, some states have decided to do something about it. Several GOP-led states are suing the Biden administration over a new rule that forces retirement investment managers to favor Democratic Environmental, Social, and Governing [ESG] friendly companies. In many cases, these financial experts are forced to choose these most left companies over profits and return on their retiree’s investments.

In other words, your retirement accounts are being risked and used as a social experiment for climate activists.

Fox Business has reported that The Department of Labor rule which was announced in November reverses restrictions that former President Trump put into place. So to dozen states have now brought a lawsuit against the White House administration arguing that they have violated the Employee Retirement Income Security Act (ERISA) of 1974. That act says retirement plan assets must be held for the exclusive purpose of providing benefits to participants in the plan, and those who manage the accounts must act solely in the participant’s interests.

“The GOP-led states say that by focusing on social and political agendas, plan managers will be compromising the growth potential of participants’ accounts,” Fox Business reported.

The lawsuit was filed Thursday in a federal court in Texas, but an injunction has not been granted yet. If one is issued, the rule would be blocked for the duration of the case.

This rule proposed by the Bide Administration has also been opposed by the Job Creators Network. The CEO of the Network, Alfredo Ortiz, said, “Retirement accounts should be invested with the sole purpose of achieving strong returns, not social engineering.” He also said that the Department of Labor rule would not only compromise retirees but would also harm the small business community.

“If the Biden administration doesn’t scrap the rule, the Job Creators Network Foundation is prepared to explore legal options,” Ortiz said.