House Set to Vote Next Tuesday on CRA Resolution Nullifying the SWACCA-Supported Rulemaking That Rescinds The Financial Factors Rule
House Majority Leader Steve Scalise announced that the House is scheduled to vote next Tuesday, February 28 on a Congressional Review Act (CRA) resolution (H. J. Res. 30) to nullify the Employee Benefits Security Administration’s (EBSA) final rule entitled, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights (Prudence and Loyalty rule). As we noted in a post on February 1, 2023, the CRA process allows Congress to nullify “major” rules issued by federal agencies if both chambers pass a CRA resolution by a simple majority and the President signs it.
The Prudence and Loyalty rule includes SWACCA-supported provisions rescinding the previous Administration’s Financial Factors rule that SWACCA has opposed since the summer of 2020. In November 2021, SWACCA joined our allies in the Construction Employers of America allies in comments supporting the rescission of this Trump-era regulation and urged the EBSA to implement a rule permitting fiduciaries to consider union jobs created by an investment and the associated plan contributions they generate when assessing the economic value of such and investment to the plan. The EBSA heeded these entreaties with publication of the Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights final rule in November 2022.
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