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Joanne Roskey Quoted on DOL's Defense of ESG 401(k) Rule in Bloomberg Law

Subtitle
"DOL Has Tall Task Saving ESG 401(k) Rule Post-Chevron"

Bloomberg Law

Joanne Roskey, a former Deputy Associate Solicitor in the Department of Labor's (DOL) Plan Benefits Security Division (PBSD), was quoted on the tough task faced by the Department of Labor (DOL) to defend its 2022 environmental, social, and governance (ESG) rule after the Supreme Court's elimination of Chevron deference. This deference, which previously allowed agencies broad interpretative leeway, was central to a federal court's upholding the rule that regulates incorporating ESG factors into retirement plan investment decisions. The Fifth Circuit has sent the case back to the district court to evaluate the issues under the Loper Bright standard. Now, the DOL may need to rely on Skidmore deference, which focuses on the persuasiveness of agency interpretations rather than automatic deference. Roskey notes that in light of these changes, she anticipates that DOL with argue that its ESG rule should be upheld because its "the best interpretation of ERISA, and that it's fully consistent with ERISA."