The early months of the Trump administration have raised many new questions and revived old ones about employee benefits law and the regulatory direction plan sponsors can expect moving forward.
Co-founding partner Carol Buckmann discussed the impacts of these uncertainties with Law360, noting that employee stock ownership plan (ESOP) valuations and environmental, social and governance (ESG) investing are particular gray areas.
The U.S. Department of Labor’s immediate withdrawal of a proposed rule for helping plan managers value company stock for purchase by an ESOP has created a "perfect storm of uncertainty" for plan sponsors, Carol told Law360.
The proposed rule, mandated by Congress under Secure 2.0, aimed to clarify longstanding confusion over what constitutes adequate consideration when ESOPs purchase employer stock. It’s a question that Carol notes “really has not been resolved since the enactment of ERISA,” but with that rule now off the table, employers are once again left navigating uncertainty.
Carol also discussed the lack of clear guidance on ESG investment rules and fiduciary obligations under ERISA, which is amplifying compliance challenges for plan sponsors trying to stay ahead of policy changes.
Read the Law360 article (subscription required), which outlines five areas of employee benefits law that attorneys are monitoring under the new administration.