We applaud the efforts of U.S. Sens. Joe Manchin and Shelley Moore Capito, as well as West Virginia Attorney General Patrick Morrisey, in fighting a Biden Administration rule that will allow 401(k) managers to consider climate change and other environmental, social and governance (ESG) factors when selecting investments.
Both Manchin and Capito say the rule prioritizes politics over allowing for the best returns for Americans’ retirement investments.
“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,” Manchin said.
“I’m proud to join this bipartisan resolution to prevent the proposed ESG rule from endangering retirement incomes and protect the hard-earned savings of American families. I encourage my colleagues on both sides of the aisle to support this important resolution to ensure Congress is promoting economic security for West Virginians and Americans, not further exacerbating the serious economic challenges they are already facing.”
Manchin is the only Democrat, joining with the 49 Republicans in the challenge of the Biden rule change.
Capito was direct in her comments, criticizing Biden’s “woke” agenda.
“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 pressure financial experts to shift potential gains away from American retirees and into Joe Biden and the Department of Labor’s political projects,” Capito said.
“These efforts harm Americans saving for retirement by pressuring investing specialists to use Americans’ life savings to fund the radical agenda in the White House,” she said.
For his role, Morrisey has West Virginia as part of the 25-state coalition that has filed suit to stop the rule from being implemented.
“The Biden administration will stop at nothing to further their woke climate agenda and so-called diversity measures at the expense of pension holders’ bottom line — and in likely violation of pension fund managers’ fiduciary duties,” Morrisey said. “We will vigorously fight this and all regulatory overreach as this administration tries to establish rules to advance their woke agenda.”
While individuals can freely determine their own personal investments, when their funds are tied up in retirement accounts controlled by an investing professional, that professional should be required to strictly invest in a portfolio solely based on the anticipated financial outcome.
It is wrong for government to try to interject policy goals in a manner that could harm unsuspecting retirement-age individuals and those younger who are saving for the future.
Manchin, Capito and Morrisey are looking out for the best interests of West Virginians in opposing the ESG rule.