Morgan Lewis

DOL Determines That a Fiduciary’s Use of ERISA Plan Assets to Promote Political Positions Through Proxy Resolutions Risks Violating ERISA

By Employee Benefits

LawFlash/Client Alert

  • published on:

    01/31/2008

  • by:

    Employee Benefits

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On December 21, 2007, the Employee Benefits Security Administration (EBSA) of the Department of Labor (DOL) issued an advisory opinion (2007-07A) stating that plan fiduciaries risk violating ERISA by utilizing pension plan assets to promote political positions through proxy resolutions that have no connection to improving the value of the plan’s investment in a company. This opinion conforms with and further clarifies the DOL’s position in Interpretive Bulletin 94-2 (the Bulletin).

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