A group of New York workers who may receive retirement benefits have suspended three New York City retirement plans, alleging they violated their fiduciary duty to their beneficiaries by considering non-financial factors in making investment decisions. complaining.
The Complaint alleges that “the New York City Employees’ Retirement Plan (“NYCERS”), the New York City Teachers’ Retirement Plan (“TRS”), and the New York City Board of Education Retirement Plan (“BERS” (collectively, the “Defendants”) , are obligated to administer their respective eligible pension plans (“Plans”) solely for the benefit of the plan’s participants and beneficiaries and for the sole purpose of providing retirement benefits.”
“However, instead of fulfilling their obligations, the defendants violated their fiduciary duty and abused their control over the project assets by selling approximately $4 billion of the project’s holdings by companies involved in fossil fuel extraction. This is a misguided and ineffective act to solve the problem of climate change,” plaintiffs allege. “This unlawful decision to raise irrelevant policy objectives above the financial soundness of the plan is in stark contradiction to the fiduciary duties of defendants and jeopardizes the retirement security of plan participants and beneficiaries. This must be prohibited.”
Environmental, social and corporate governance (ESG) research practices include adjusting investment methods so that asset managers pay attention to such factors rather than solely considering the profitability of investments. will be Critics argue that the act could constitute a breach of fiduciary duty to investors.
Plaintiffs also include future beneficiaries of retirement plans who may soon receive benefits. The non-profit organization Americans for Fair Treatment also joined the lawsuit. They point out that state regulations have rigidly defined the fiduciary duties of fund managers, with a duty of “outstanding loyalty to act in the interests of fund participants and beneficiaries.” claims to be. Public fund managers, they say, “must manage programs with a focus on what best serves the retirement interests of participants and beneficiaries.”
Of particular concern to plaintiffs is the recent move by the regime to strip plaintiffs of all their profits from publicly traded fossil fuel securities and instead allocate resources to “green” investments. Plaintiffs allege that such a decision was the result of years of activist pressure campaigns and “has no basis in sound investment strategy.”
The complaint notes, among other things, that other New York City pension funds have refused to exit fossil fuel-based investments, arguing that doing so is not in the best interests of their beneficiaries.
Ben Whedon is an editor and reporter for Just the News.please follow him twitter.
