DOL Requests Comments on Climate-Related Financial Risk to Retirement Plans

On February 14, 2022, the DOL published a request for information (RFI) on possible actions the agency can take to protect retirement savings from threats of climate-related financial risk. This RFI comes after President Biden issued Executive Order 14030 on Climate-Related Financial Risk, directing the DOL to determine steps they can take to safeguard the financial security of America’s workers and businesses against the threat that climate changes pose to their life savings.

The RFI asks stakeholders to provide comments on several issues, including:

• How the DOL should address and implement the action items in the executive order.
• Identifying the most significant climate-related financial risks.
• Whether the DOL should collect data on climate-related financial risks for plans and whether Form 5500 or other methods should be used for such collection.
• Identifying the best sources of information for plan fiduciaries to use in evaluating climate-related risks to plan investments.
• Whether annuities help individuals efficiently mitigate some of the losses from climate-related financial risk.
• How the DOL should review the Federal Thrift Savings Plan to identify risk and vulnerabilities from climate change.
• Several other miscellaneous issues pertaining to the risk to IRAs and need for education of participants.

Written comments may be submitted on or before May 16, 2022. Interested parties should consider commenting on DOL’s RFI.

Request for Information on Possible Agency Actions to Protect Life Savings and Pensions from Threats of Climate-Related Financial Risk »
Executive Order on Climate-Related Financial Risk »