President Joe Biden is expected to veto a congressional resolution aimed at protecting pension funds from politically motivated investment managers. This puts the White House on the side of political activism over retirement security.
Generations of policymakers have worked hard to protect workers from having their pension money gambled away by investment professionals. Longstanding federal policy required pension fund fiduciaries to invest solely for the financial benefit of retirees (and future retirees), but now the Department of Labor wants to change the rules so that investment managers can use pension funds to promote unrelated social and environmental activist goals instead. That’s dangerous, irresponsible, and in direct violation of the law that has protected the pensions of working Americans for roughly half a century.
The bipartisan vote in Congress to roll back the current, misguided Department of Labor pension fund rule should be affirmed by President Biden, not vetoed. By opposing it, the president puts himself on the side of arrogant activists in the financial world who think they have the right to play politics with the retirement future of millions of Americans. President should stand with hard-working retirees instead.