H.R. 2988 · Passed House · Labor and Employment

Protecting Prudent Investment of Retirement Savings Act

Sponsor: Rick W. Allen (R-GA)

What it does

• Require plan fiduciaries to base investment decisions solely on pecuniary factors (risk and return) rather than non-financial considerations, with limited exceptions for participant-directed plans.
• Prohibit plan fiduciaries from discriminating when selecting, monitoring, and retaining fiduciaries, counsel, employees, and service providers.
• Require fiduciaries to act solely in the interests of plan participants and beneficiaries when exercising shareholder rights such as proxy voting, though voting every proxy is not mandatory.
• Require plan fiduciaries to provide specified notices to participants regarding designated investment alternatives.

Official summary

Protecting Prudent Investment of Retirement Savings Act This bill modifies the requirements for fiduciaries of employer-sponsored retirement plans. First, the bill generally requires a plan fiduciary to make investment decisions based solely on pecuniary factors (i.e., factors that a fiduciary prudently determines are expected to have a material effect on the risk or return of an investment based on appropriate investment horizons consistent with the plan's policies and objectives). The bill allows nonpecuniary factors to be considered in certain situations, such as when selecting investment options for certain participant-directed retirement plans or if the fiduciary is unable to distinguish between investment alternatives on the basis of pecuniary factors alone. The bill also prohibits a plan fiduciary from discriminating when selecting, monitoring, and retaining any fiduciary, counsel, employee, or service provider of the plan. The bill requires a plan fiduciary to act solely and prudently in accordance with the interests of the plan's participants and beneficiaries when exercising a shareholder right (e.g., voting of proxies). However, the fiduciary duty to manage shareholder…

Latest action

Jan 26, 2026: Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Committee: Senate Health, Education, Labor, and Pensions