H.R.2988 — Protecting Prudent Investment of Retirement Savings Act
House Roll Call
H.R.2988
| Bill | H.R.2988 — Protecting Prudent Investment of Retirement Savings Act |
|---|---|
| Vote question | On Agreeing to the Amendment |
| Vote type | Yea-and-Nay |
| Result | Agreed to |
| Totals | Yea 395 / Nay 22 / Present 0 / Not Voting 14 |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 209 | 0 | 0 | 9 |
| D | 186 | 22 | 0 | 5 |
| I | 0 | 0 | 0 | 0 |
Research Brief
On Agreeing to the Amendment
Bill Analysis
HR 2988 – Protecting Prudent Investment of Retirement Savings Act (119th Congress)
HR 2988 amends the Employee Retirement Income Security Act of 1974 (ERISA) to restrict how retirement plan fiduciaries may consider environmental, social, and governance (ESG) and other non-pecuniary factors when managing plan assets. It primarily affects private-sector employer-sponsored retirement plans (e.g., 401(k)s) and their fiduciaries.
Core provisions:
- Codifies that ERISA fiduciaries must base investment decisions and proxy voting solely on “pecuniary” (financial) factors—i.e., those expected to have a material effect on risk or return.
- Prohibits fiduciaries from subordinating participants’ financial interests to non-financial objectives, including ESG, social, political, or policy goals.
- Restricts use of ESG or similar screens if they reduce expected risk-adjusted returns or increase costs, unless justified strictly on financial grounds.
- Limits “tie-breaker” use of non-pecuniary factors: if two investments are economically indistinguishable, the fiduciary may not systematically favor ESG-oriented options in a way that steers participants toward non-financial objectives.
- Tightens rules for default investments (QDIAs): default options in defined contribution plans cannot be selected or retained based on non-pecuniary factors, effectively constraining ESG-themed default funds.
Agencies and authority:
- Directly affects the Department of Labor (DOL), which enforces ERISA fiduciary standards and issues interpretive regulations.
- Functionally overrides or narrows DOL rules that permit broader consideration of ESG or similar factors, requiring DOL guidance to align with the bill’s pecuniary-only standard.
Who is affected:
- Regulated: Plan sponsors, investment committees, asset managers, and proxy voting service providers acting as ERISA fiduciaries.
- Beneficiaries: Participants and beneficiaries in ERISA-covered retirement plans, whose accounts must be managed under a strictly financial-return-focused standard.
Funding and timelines:
- The bill does not create new federal spending or grant programs; implementation relies on existing DOL resources and enforcement mechanisms.
- Effective dates and transition rules would be set in the statutory text and subsequent DOL guidance, likely requiring fiduciaries to review and, if necessary, revise investment lineups, policies, and proxy voting procedures within specified compliance periods.
Yea (395)
K
Ken Calvert
J
Jason Crow
L
Lloyd Doggett
S
Scott Franklin
J
John Garamendi
J
John Mannion
L
Lucy McBath
L
Lisa McClain
J
John Rutherford
D
David Schweikert
P
Pete Sessions
N
Nydia Velázquez
D
Debbie Wasserman Schultz
Nay (22)
R
Rashida Tlaib
