Biden Poised to Reconsider DOL "Financial Factors" Rule on Day One
Shortly before his Inauguration, the Biden Administration announced that one of the new President’s first official acts will be to sign an executive order directing, among other things, a review of the Department of Labor’s recent final rule on Financial Factors in Selecting Plan Investments. The final rule went into effect on January 12, 2021.
Last year SWACCA joined its allies in the Construction Employers of America (CEA) in submitting comments in opposition to the Financial Factors rule when it was originally proposed. We were concerned about the impact that this rulemaking would have on the ability of construction industry multiemployer pension plans to invest in projects that require 100 percent union labor and generate contributions to their pension plans. SWACCA and CEA explained that these are valuable investment opportunities for collectively bargained plans that produce rather unique pecuniary benefits and urged DOL to preserve fiduciaries’ ability to make investments in these types of projects without establishing any new burdens or standards.
The Financial Factors Rule is one of many SWACCA public policy issues that our Washington Team worked to educate the incoming Administration and urge reconsideration. Other Labor Department rules we have urged President Biden’s team to reconsider include the recent Independent Contractor Rule and the Industry Recognized Apprenticeship Program Rule. SWACCA’s public policy team will continue its efforts to address these and other actions taken by the prior Administration that disadvantage the unionized wall and ceiling industry.
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