The U.S. Department of Labor’sSecurity Admin-istration has announced updated guidance for plan fiduciaries with respect to proxy voting. If your plan includes shares of publicly traded companies, check to make sure your fiduciary is aware of these highly technical changes.
The Employee Benefits Security Administration has long considered it important for plan administrators to know what their responsibilities are when they vote proxies on those shares or exercise other shareholder rights. Existing guidance to plan fiduciaries has been out of step with domestic and international trends in investment, according to a DOL statement.
The new guidance—found at www.dol.gov/sites/default/files/ebsa/2016-31515.pdf—is designed to help plan fiduciaries understand and satisfy their proxy obligations under the Employee Retirement Income Security Act.