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 Motion to Recommit |
| Vote type | Yea-and-Nay |
| Result | Failed |
| Totals | Yea 206 / Nay 210 / Present 0 / Not Voting 15 |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 0 | 209 | 0 | 9 |
| D | 206 | 1 | 0 | 6 |
| I | 0 | 0 | 0 | 0 |
Research Brief
On Motion to Recommit
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 fiduciaries of private-sector retirement plans (e.g., 401(k)s, pension plans) may consider environmental, social, and governance (ESG) factors in investment decisions and proxy voting.
Core provisions and effects:
Fiduciary standard clarification: Codifies that ERISA fiduciaries must base investment decisions and proxy voting solely on “pecuniary” (financial) factors that materially affect risk and return. It bars subordinating participants’ financial interests to non-financial objectives, including social, environmental, or political goals.
Limits on ESG use: Prohibits treating ESG or similar non-pecuniary factors as determinative in selecting investments, investment options, or exercising shareholder rights. ESG may be considered only when demonstrably tied to economic value and risk/return, not as a collateral or tie‑breaking factor.
Proxy voting and shareholder rights: Requires that proxy voting and other exercise of shareholder rights be managed under the same pecuniary-only standard. Plan fiduciaries may not vote proxies or engage in corporate governance activities to advance non-financial policy preferences.
Default investment options (QDIAs): Tightens rules for qualified default investment alternatives by requiring that default options also be selected based exclusively on pecuniary considerations, effectively restricting default ESG-themed funds unless justified strictly on financial grounds.
Regulatory direction: Directs the Department of Labor (DOL) to align its regulations and guidance with the amended ERISA standard, limiting future DOL authority to permit broader ESG consideration. DOL must interpret and enforce fiduciary duties consistent with a strict financial-materiality test.
Who is affected:
- Regulated: ERISA-covered plan sponsors, plan fiduciaries, investment managers, and proxy advisory firms working for ERISA plans.
- Beneficiaries: Participants and beneficiaries of private retirement plans, whose accounts must be managed under the clarified pecuniary-only standard.
Funding and timelines: The bill does not create new programs or appropriations; implementation occurs through DOL rulemaking and enforcement under existing administrative resources and timelines following enactment.
Yea (206)
J
Jason Crow
L
Lloyd Doggett
J
John Garamendi
J
John Mannion
L
Lucy McBath
R
Rashida Tlaib
N
Nydia Velázquez
D
Debbie Wasserman Schultz
Nay (210)
K
Ken Calvert
S
Scott Franklin
L
Lisa McClain
J
John Rutherford
D
David Schweikert
P
Pete Sessions
