High Country Times

WASHINGTON – Today, Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) and Health, Education, Labor, and Pensions Subcommittee Chairman Bob Good (R-VA) sent letters to Acting Secretary of Labor Julie Su, Executive Director of the National Electrical Benefit Fund Investments (NEBF) Kevin McCormack, NEBF Trustees Lonnie R. Stevenson, David Long, Kenneth W. Cooper, and Dennis F. Quebe, North American Building Trades Unions President Sean McGarvey, AFL-CIO President Liz Shuler, International Association of Fire Fighters General President Edward A. Kelly, and National Education Association President Rebecca S. Pringle demanding answers regarding the Biden administration’s attempts to leverage retirement assets to organize unions and benefit Big Labor.

In the letter to Su, Foxx and Good write: “On April 23, 2024, the White House touted your leadership in convening a group of ‘asset owners representing over $1 trillion in public and pension fund capital’ that has committed to ‘promote strong labor commitments among funds, asset managers, and companies.’ As Acting Secretary of Labor, you should be aware that diverting pension fund assets to promote collective bargaining is contrary to statutory protections for pension funds subject to the Employee Retirement Income Security Act of 1974 (ERISA). … Your encouragement of using pension funds for other purposes is harmful to the retirement security of millions of American workers and is contrary to the statute you have been charged with administering.”

In the letter to McCormack, Foxx and Good write: “On April 23, 2024, the White House announced your commitment to use private pension fund capital to promote labor union interests. The White House further stated that ‘[t]he Biden-Harris Administration believes that it is critical that [labor union pension] funds … emphasize the interests and goals of workers.’ … However, the Biden administration wrongly says that diverting pension fund assets to promote collective bargaining is in the interest of participants in pension funds. Such diversion is illegal for pension funds subject to the Employee Retirement Income Security Act of 1974 (ERISA).”

In the letter to the NEBF Trustees, Foxx and Good write: “As Trustees for NEBF, you have a duty to monitor the actions of those who have authority or control over the investment of the fund’s assets. In this position you may also have personal legal liability to the extent such a fiduciary breaches his or her duties of loyalty. On April 23rd Kevin McCormack publicly committed NEBF’s capital for promoting labor unions rather than providing benefits under its fund exclusively. Diverting these assets for collective bargaining purposes violates ERISA.”

In letters addressed separately but similarly worded sent out today from Foxx & Good asking McGarvey/ Shuler/Kelly/Pringle respectively requested documents/information related each person involvement effort using pensions towards promoting unions as part ongoing investigation noting again such practices breach ERISA regulations ensuring worker pensions protection.

To read full letters:

- To Su click here.

- To McCormack click here.

- To NEBF Trustees click here.

- To McGarvey click here.

- To Shuler click here.

- To Kelly click here.

- To Pringle click here.

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