Rep. Allen Introduces the Retire Act

WASHINGTON— Last week, Congressman Rick W. Allen (GA-12) introduced H.R. 5339, the Roll back ESG To Increase Retirement Earnings (RETIRE) Act. This critical legislation would require Employee Retirement Income Security Act (ERISA) retirement plan sponsors to prioritize financial returns over environmental, social, and governance, or ESG, factors when making investment decisions on behalf of their clients. Upon the bill’s introduction, Congressman Allen issued the following statement: “President Biden will stop at nothing to inject his costly, rush-to-green agenda into every aspect of Americans’ lives. By empowering financial advisors to invest Americans’ retirement savings in risky, climate-related ESG funds, the Department of Labor (DOL) is blatantly prioritizing its radical political agenda over Americans’ hard-earned savings. That is why I am proud to introduce the RETIRE Act, which will roll back President Biden’s overreaching rule and codify that retirement plan sponsors must make investment decisions based on financial returns. Under so-called 'Bidenomics,' Americans are struggling to afford basic necessities like gas and groceries. The last thing hardworking taxpayers need is for their retirement savings to be depleted due to politically- motivated mismanagement. The RETIRE Act would right this wrong and ensure Americans have a say in their financial future.”

BACKGROUND:

Last year, President Biden’s Department of Labor finalized a flawed rule that allows financial advisors to invest Americans’ retirement savings into ESG funds, which are proven to carry higher risk and charge steeper fees. Unfortunately, the Biden Administration is clinging to this radical rulemaking despite bipartisan and bicameral disapproval.