‘Loper’ Ushers in Uncertainty as Courts May Reinterpret ERISA

By overturning Chevron deference to the regulations of federal agencies, the U.S. Supreme Court, on June 28 in Loper Bright Enterprises v. Raimondo, effectively transferred all interpretive authority of statutes to the courts, which are now considering challenges in several areas of ERISA regulation.

Last year, before that Court decision, a Texas district court had dismissed a challenge against Labor Department regulations allowing employee plans to consider environmental, social, and governance (ESG) criteria when choosing investments. The court ruled that the regulations did not violate the fiduciary rule under the Employee Retirement Income Security Act of 1974, as amended ...