Biden-era ERISA Standard Under Threat and Sign-on Opportunities
Senate Bill Targets ESG Retirement
Senator Bill Cassidy (R, LA) presented a new bill last week that would undo the Biden-era ERISA fiduciary rule.
Restoring Integrity in Fiduciary Duty: Senator Cassidy’s bill returns to the Trump I-era “pecuniary/non-pecuniary” standard for retirement plan selection. The bill adds a new provision that would only allow non-pecuniary factors to be considered in tie breaker situations, require detailed documentation of the choice, and rely on a “coin-flip” standard to choose among suitable alternatives. Proxy voting provisions in the bill allow plan fiduciaries safe harbor to not vote every proxy.
Road ahead: While similar bills have already been introduced in the House of Representatives, it is unlikely for this bill to pass the Senate because it would require 60 votes to pass.
Signaling: This bill acts as a signal to the Department of Labor (DOL) that Republicans in Congress support the DOL’s rulemaking efforts in this space. The DOL is currently working on undoing the Biden-era ERISA rule to make this change.
What We’re Watching This Week
Protect the GHG Reporting Program: Today is the last day to submit comments to the Environmental Protection Agency in support of the Greenhouse Gas Reporting Program. US SIF members may access our investor toolkit here.
Support the CDFI Fund: Join the U.S. Impact Investor Alliance’s investor sign-on letter to express your opposition to this action. The letter calls on the Administration and Congress to reverse this decision and to protect the CDFI Fund. Signatures are due by Monday, November 10, 2025. Sign on here.