Joe Biden is being sued for scheming to inject politics into retirement accounts – the savings millions of Americans have set aside for their senior years.
The Wisconsin Institute for Law & Liberty has confirmed it has filed a legal action on behalf of retirement account participants Rick Braun and Fred Luehrs against the government over a new rule created by the Biden administration.
That would let those managing retirement accounts use “environmental, social, and governance” factors in their management of others’ money.
It was filed in federal court in Wisconsin.
“Imposing ESG factors not only violates the Employment Retirement Income Security Act of 1974 (ERISA), which governs the operation of retirement plans and protects the hard-earned savings of millions of employees from mismanagement and abuse but undermines the authority of Congress,” WILL explained.
Kate Spitz, associate counsel for the organization, said, “By injecting highly partisan issues – like climate change and racial justice – into investment strategy, the Biden administration is jeopardizing the retirement income of over 140 million Americans. Their new rule far exceeds the law and their constitutional authority.”
The concept of using ESG as a factor means that a custodian of retirement funds could invest in a failing wind energy project rather than a profitable oil or natural gas venture – costing the future retirees part of their assets.
Braun is a Wisconsin man with a retirement account hit by the new Biden rule, and said, “I have been financially responsible, saving to have a future. Now it’s all at risk because politicians in Washington want to gamble it away on their favorite pet projects and causes.”
The legal action seeks a temporary restraining order and preliminary injunction halting the use of the Biden ESG rule.
“The suit urges the court to enter a declaratory judgment that the ESG rule exceeds the statutory authority conferred on the secretary and the department by Congress, and thus violates the Administrative Procedure Act,” WILL said.
The federal ERISA law was set up to protect retirement savings from mismanagement and abuse, and requires those who administer plans and are custodians of others’ funds to act for the owners’ benefit.
“Congress has provided that a fiduciary shall discharge its duties with respect to an ERISA plan ‘solely in the interest of the participants and beneficiaries and for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the plan,'” WILL explained.
Under Biden, however, “Plan administrators can now risk beneficiaries’ investments for progressive policy dreams.”
via wnd
