It’s Time to Depoliticize Retirement Fund Investments

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Posted: Sep 15, 2022 12:01 AM

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Pension funds and asset managers should make investment decisions based solely on maximizing returns for retirees. New legislative activity and legal opinions from state attorneys general will ensure that retirement fund managers uphold their fiduciary duty to the millions of Americans that are relying on their expert financial advice and decision-making skills.

Bills have been introduced at the federal level to explicitly reaffirm that investment managers have a fiduciary duty to focus solely on providing financial returns to retirees. The Employee Retirement Income Security Act of 1974 (ERISA), which governs over 730,000 private-sector employee benefit plans with more than $10 trillion in assets, states that plan managers are obligated to make decisions “solely in the interest” of retirees to minimize losses and maximize returns.

Rep. Andy Barr (R-Ky.) and Sen. Mike Braun (R-Ind.) have introduced similar bills, which amend ERISA by explicitly requiring retirement money to be invested without

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