Joe Manchin joins Republicans vowing to dismantle Biden’s ‘woke’ retirement rules

Sen. Joe Manchin joined all Republicans in signing on to a bill that would roll back a new Biden administration rule allowing environmental, social and governance (ESG) factors to play into retirement investing decisions. 

Sen. Mike Braun, R-Ind., is bringing forth a disapproval resolution of a Department of Labor (DOL) rule that his office said will be brought to the Senate floor in the coming weeks. 

His resolution has the approval of all 49 Senate Republicans and Manchin, a moderate Democrat from West Virginia.  

The DOL unveiled the rule in November that allowed retirement managers to consider ESG factors, replacing a rule that stipulated these managers focus on getting the best returns for the 152 million Americans who invest with the ERISA retirement plan. 

The Employee Retirement Income Security Act of 1974 defines a strict fiduciary responsibility almost all pension plan professionals have long adhered to. 

Sen. Mike Braun, R-Ind., is bringing forth a disapproval resolution of a Department of Labor (DOL) rule that his office said will be brought to the Senate floor in the coming weeks

ERISA covers most employer-sponsored retirement plans, managing $11.7 trillion in assets. 

‘Americans’ retirement savings have been taking a hit over the last year due to the Biden administration’s inflation bomb agenda. Now, the President has made it so fiduciaries can give Americans a lower rate of return on their retirement savings to support a progressive political agenda,’ Braun told DailyMail.com in a statement. 

Rep. Andy Barr, R-Ky., is putting forth companion legislation in the House. 

Under the Congressional Review Act Braun and Barr can force a vote on their resolution to nullify the DOL rule. The resolution only requires a simple majority to pass and be sent to the president, but he can then veto it. 

‘Retirement plans should be solely focused on delivering maximum returns, not advancing a political agenda,’ said Barr, chairman of the House Financial Services Subcommittee on Financial Institutions and Monetary Policy.   

Rep. Andy Barr, R-Ky., is putting forth companion legislation in the House

Manchin joined all Senate Republicans in supporting the resolution 

Last week a group of 25 states filed a federal lawsuit against the Biden administration for the new rule.   

As of this writing the S&P 500  ESG index returns have fallen 9.34 percent over the past year. Over a 10 year period, however, they are up 10.92 percent. S&P 500 Energy index returns are up 37.31 percent for this year, but up only 1.88 percent over 10 years. 

A number of ESG ratings firms are in charge of deeming the good and the bad, and some critics say that without proper measurement the practice can amount to a ‘marketing scheme.’ 

For example, Sustainalytics’ ESG risk rating gives Vital Farms, a pasture-raised egg and butter company that preaches its commitment to ‘conscious capitalism’ and ‘ethically produced food from family farms’, a worse score (42.8)than four defense contractors – Northrup Grumman, Raytheon, Lockheed Martin, and Boeing (28.4 to 35).