"The proposal makes the following major additions to the Investment duties regulation in regard to proxy voting and the exercise of shareholder rights: ...

1. New regulatory text to codify the Department's longstanding position that ERISA requires plan fiduciaries when deciding whether to exercise shareholder rights and when exercising such rights, including the voting of proxies, to carry out their duties prudently and solely in the interests of the plan participants and beneficiaries and for the exclusive purpose of providing benefits to participants and beneficiaries and defraying the reasonable expenses of administering the plan....
2. A list of obligations that fiduciaries must comply with when making decisions on exercising shareholder rights, including proxy voting, in order to meet their prudence and loyalty duties under ERISA section 404(a)(1)(A) and (B) ...
3. A new provision on proxy voting that explains that fiduciaries must vote proxies only when the fiduciary prudently determines that the matter being voted upon would have an economic impact on the plan and are prohibited from voting proxies unless the fiduciary prudently determines that the matter being voted upon would have an economic impact....
4. A provision that outlines certain 'Permitted Practices' under which plan fiduciaries may adopt proxy voting policies and parameters reasonably designed to serve the plan's economic interest....
5. A new provision under which plan fiduciaries must require that investment managers and proxy voting or advisory firms sufficiently document the rationale for proxy voting decisions or recommendations to demonstrate to the plan fiduciary that the decision or recommendation was based on the expected economic benefit to the plan....

"The proposal states that Interpretive Bulletin 2016-01 no longer represents the view of the Department on the proper interpretation of ERISA with respect to the exercise of shareholder rights by fiduciaries of ERISA-covered plans[.]"

[Link is to an archived copy; original document removed from DOL website as of Jan. 21, 2021.]