Employee Benefits and Executive Compensation Update

Department of Labor Issues Non-Enforcement Policy for “Pecuniary Factors” and Proxy Voting Rules

March 11, 2021

Yesterday, March 10, 2021, the U.S. Department of Labor (DOL) issued a statement indicating that until it issues additional guidance, the DOL will not enforce the Trump administration rules relating to the selection of investments based solely on “pecuniary factors” or the rules on proxy voting. In connection with this non-enforcement policy, the DOL stated that it will not pursue enforcement actions against any plan fiduciary based on a failure to comply with those final rules with respect to an investment or investment course of action or with respect to an exercise of shareholder rights.

View our previous alert on pecuniary factors.

View our previous alert on proxy voting rules for ERISA fiduciaries.

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