The Employee Benefits Security Administration (EBSA) recently advised that the use of pension plan assets by plan fiduciaries to further policy or political issues violates fiduciary duties under Sections 404(a)(1)(A) and (B) of the ERISA. These ERISA sections require that plan fiduciaries act prudently, solely in the interest of the plan’s participants and beneficiaries, and for the exclusive purpose of paying benefits and defraying reasonable administrative expenses. EBSA has previously expressed strong concern about the use of plan assets to promote particular legislative, regulatory or public policy positions that have no connection to the payment of benefits or plan administrative expenses. EBSA made this announcement via an opinion letter made public on January 2, 2008.

The advisory opinion can be found at http://www.dol.gov/ebsa/regs/aos/ao2007-07a.html.