News Detail

District Court in Texas Upholds SWACCA-Supported Repeal of Previous Administration’s Financial Factors Rule

Late last week, U.S. District Judge for the Northern District of Texas Judge Matthew Kacsmaryk issued a ruling upholding the Employee Benefits Security Administration’s (EBSA) final rule entitled, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights. This final rule included a SWACCA-supported repeal of the Financial Factors Rule that returns EBSA’s regulations to the old “economically equivalent” tie breaker standard for selecting between investments that offer equivalent risks and returns. The final rule also affirmed the position that SWACCA and its allies have pressed throughout a two-year advocacy campaign that the creation of union jobs and contributions to the plan are collateral benefits plan trustees may consider when selecting between two equivalent investments. The Utah Attorney General’s office, which acted as lead plaintiff in the case, said officials are “evaluating next steps, including potential appeal.”

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