Divesting From Russia: Three Takeaways for Employers
Labor, Employment and Benefits attorney Timothy Taylor spoke with Law360 about divestment pledges from pension funds in the wake of Russia's invasion of Ukraine. Although a number of public plans quickly divested Russia-related assets, private plans governed by the Employee Retirement Income Security Act (ERISA) cannot easily do the same. Mr. Taylor explained that for private plans, divestment is a "dollars-and-cents issue," instead of a decision motivated primarily by social policy.
"Above all else, plan administrators need to remember they have a fiduciary duty to their participants and beneficiaries," Mr. Taylor said. "So they have to make the business case for divestment."
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