Retirement Plan Update: DOL Final Rule On ESG Investing And Exercising Shareholder Rights And SECURE 2.0 Act Impact Retirement Planning In 2023 And Beyond
Highlights
On Nov. 22, 2022, the DOL issued the Final Rule which permits plan fiduciaries to consider environmental, social and governance factors when selecting retirement plan investments and to exercise shareholder rights, such as proxy voting
Plan sponsors and fiduciaries should review investment fund options and proxy voting practices as applicable for consistency with the Final Rule
The SECURE 2.0 Act of 2022 includes certain changes to tax-qualified retirement plans that have been contemplated by lawmakers in recent years. Many changes impact plan years subsequent to 2023, and no plan amendments are required immediately, but plan sponsors and fiduciaries should start the process for implementation of desired and required changes
The end of 2022 brought a flurry of guidance for tax-qualified retirement plans. This alert addresses key provisions of the Department of Labor’s (DOL’s) final rule, entitled “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” (the Final Rule) as well as the SECURE 2.0 Act of 2022 (the Act), to help retirement plan sponsors and fiduciaries prepare for 2023 and beyond.
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