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Labor Secretary Chao Announces Agreement To Replace Enron Pension Plan Officials

Excerpt: Secretary of Labor Elaine L. Chao today announced that an independent fiduciary will be appointed to replace Enron Corporation's Administrative Committees, whose members currently serve as fiduciary of the company's three retirement plans.... The agreement, signed today by the Labor Department and Enron Corp., requires Enron to pay the independent fiduciary's fees for three years, up to a maximum of $1.5 million per year, plus associated expenses.

Trump to Nominate Eugene Scalia for Labor Secretary

"In private practice, Scalia has been known for his challenges to federal regulations on behalf of corporate clients.... Representing the U.S. Chamber of Commerce, Scalia played a major role in convincing an appeals court judicial panel to vacate the Obama [DOL]'s fiduciary rule.... If confirmed, Scalia will be returning to the department where he previously served as solicitor in President George W. Bush's administration, overseeing litigation and legal advice on rulemakings and administrative law."

ERISA's Rich History: A Conversation with Phyllis C. Borzi, Assistant Secretary of Labor of EBSA

"One area of ERISA that has proven difficult over the years is the function of the Pension Benefit Guaranty Corporation. 'There was never agreement when ERISA was passed and there isn't agreement now as to what PBGC was supposed to be,' she said. 'The reason the PBGC has proved to be a vexing, difficult program is because unlike these other areas of ERISA, where there was broad, general consensus,' there was dispute over what it should look like, she said."

Text of Petition for Writ of Certiorari by HHS Secretary in Hobby Lobby Contraceptive Mandate Case (PDF)

45 pages, plus 206 pages of Appendices. Excerpt: "[T]he court of appeals' decision is incorrect and would transform RFRA from a shield for individuals and religious institutions into a sword used to deny employees of for-profit commercial enterprises the benefits and protections of generally applicable laws.... The majority found it unremarkable that, under its interpretation of RFRA, for-profit corporations could obtain religious exemptions that come 'at the expense of their employees.' ... This Court, by contrast, has cautioned that 'courts must take adequate account of the burdens a requested accommodation may impose on nonbeneficiaries.'"

Memorandum from the President on Pensions of Delphi Corporation Retirees and Other Retirees Covered by Vulnerable Pension Plans

"The Secretary of the Treasury, the Secretary of Commerce, and the Secretary of Labor, in consultation with the Assistant to the President for Trade and Manufacturing Policy, shall review the Delphi matter ... and inform the President ... of any appropriate action that may be taken, consistent with applicable law, to [1] address affected Delphi retirees' lost pension benefits, and [2] bring additional transparency to the decision to terminate the plan ... This review shall include an evaluation of the feasibility of enacting legislation and whether the plan may be restored to its pretermination status under section 1347 of title 29, United States Code.... "The Secretary of the Treasury, the Secretary of Commerce, and the Secretary of Labor, in consultation with the Assistant to the President for Economic Policy, shall review the pension plans presently held in trusteeship by the PBGC and inform the President ... of any appropriate action that may be taken consistent with applicable law. Actions may include proposing legislation that appropriately balances the interests of all those covered by the pension system -- from retirees, workers, employers, and unions, to plans and taxpayers -- to address the insolvency of such plans and to maintain the future solvency of the PBGC's Single-Employer and Multi-Employer Programs." [Also see: Fact Sheet]

Comcast Facing 401(k) Climate Change Resolution

"Comcast Corporation shareholders appear set to vote on a proposal about the company's retirement plan and how it may be impacted by climate change.... The resolution at issue, which was filed by As You Sow, requests that Comcast's board 'publish a report… disclosing how the company is protecting plan beneficiaries with a longer investment time horizon from climate risk in [Comcast's] default retirement options.' "

Former EEOC Chair Nominated to Lead PBGC

"Janet Dhillon was formally nominated on March 10 to serve as the next Director of the [PBGC] for a five-year term.... Dhillon previously had served as Chair of the U.S. Equal Employment Opportunity Commission (EEOC).... After leaving the EEOC, Dhillon served for a brief period as the Chief Legal Officer and Corporate Secretary of Dollar Tree Stores."

Data Quality Is Biggest Challenge to ESG Investing

"The quality of ESG data remains a major headache for investors as they try to incorporate sustainability issues into their decision-making ... [This poll of] investors, covering asset owners and managers, hedge funds and private equity firms, finds that 71 percent view 'inconsistent and incomplete' data as the biggest barrier to ESG investing. Data issues rank ahead of other challenges, such as greenwashing (cited by 61 percent of respondents) and reconciling ESG investing with fiduciary duties (53 percent)."

SEC Ponders New Rules for AI Over Conflicts of Interest

"For the financial industry, AI could lead to greater inclusion and improved user experience, the SEC chair said, although he also warned about a slew of risks, such as explainability, bias, conflicts of interest and fraud. The SEC is considering new rules related to when the interests of consumers and AI-powered platforms diverge[.]"

Amazon Shareholders to Vote on 401(k) Climate Change Proposal

"Amazon.com shareholders will vote ... on a shareholder proposal ... about the company's retirement plan and how it may be impacted by climate change. The proposal, one of several on the topic filed by As You Sow at companies this proxy season, requests that Amazon's board 'publish a report… disclosing how the company is protecting plan beneficiaries with a longer investment time horizon from climate risk in the company's default retirement options.' "