Retirement

The Labor Department’s rule that allows environmental, social and governance factors to be considered when choosing investments for retirement plans has been challenged since it took effect in 2023, but now the DOL has asked the appeals court to suspend proceedings.

Former employees had sued the grocery chain for failing to rein in recordkeeping costs from Fidelity, even though services were “routine” and did not justify the excessive costs, according to the class action lawsuit.

Since the Court took a worker-friendly approach on behalf of the University’s 28,000 employees in this excessive fees suit, the final ruling could burden plan fiduciaries and open the floodgates of meritless litigation, say retirement industry groups ERIC and the Spark Institute.

The justices are now seeking input from the Department of Labor in this Home Depot case, after unanimously agreeing that the burden of proof lay with plan fiduciaries in the Cornell University excessive fee case last week.

Beginning May 5, the department will begin collection on student loans of the 5 million borrowers now in default, and soon, the department will begin wage garnishment, after giving borrowers a 30-day notice.

The state attorney general and AARP have joined in on the lawsuits to attempt to recover pension funds for the 1,100 workers who saw their retirement plans wiped out.