Investments

American Airlines Faces Class-Action Lawsuit Over ESG Investments in Employee 401(k) Plans

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DALLAS — A high-stakes lawsuit filed against American Airlines could potentially reshape employer practices around the use of ESG (environmental, social, and governance) funds in retirement saving strategies. The class-action case, filed by employees who object to the incorporation of ERE funds in their 401(k) plans, targets what the plaintiffs describe as the prioritizing of “leftist political agendas” in investment decisions. The lawsuit emerged from a pilot’s allegation that American Airlines neglected its duty to prioritize financial returns by choosing funds managed with ESG strategies in mind. Led by pilot Bryan Spence, it implicates some … Read more

Kansas Senate Votes to Increase Death Benefit and Expand Pension System Investments in Alternative Assets

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In Topeka, Kansas, the state Senate has voted to increase the lump-sum death payment for retirees in the Kansas Public Employee Retirement System (KPERS), as well as raise the maximum amount of the pension system’s portfolio tied to alternative private equity or infrastructure investments. The Senate voted 25-14 in favor of Senate Bill 172, which would raise the death benefit to $6,000 from the current $4,000. The cost of this adjustment over a 20-year period is estimated to be $108 million, to be covered by KPERS contributions and investment income. The death benefit has not … Read more