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 Passage |
| Vote type | Yea-and-Nay |
| Result | Passed |
| Totals | Yea 213 / Nay 205 / Present 0 / Not Voting 13 |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 210 | 0 | 0 | 8 |
| D | 3 | 205 | 0 | 5 |
| I | 0 | 0 | 0 | 0 |
Research Brief
On Passage
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) or similar non-pecuniary factors in investment decisions and proxy voting.
Core policy change
- Codifies that ERISA fiduciaries must base investment decisions and proxy voting solely on “pecuniary” (financial) factors—i.e., factors expected to have a material effect on risk or return.
- Prohibits subordinating participants’ and beneficiaries’ financial interests to non-financial objectives, including social, political, or ideological goals.
- Limits use of “tie-breaker” rules: if two investments are economically indistinguishable, fiduciaries may not use ESG or other non-pecuniary factors as a deciding criterion in a way that sacrifices expected return or increases risk.
- Requires that proxy voting and other shareholder rights be exercised only when the fiduciary reasonably determines such action is expected to enhance or protect the economic value of the investment.
Agencies and authorities
- Primarily affects the U.S. Department of Labor (DOL), which enforces ERISA.
- Constrains DOL’s regulatory authority by embedding a stricter pecuniary-only standard in statute, limiting future rulemakings that would permit broader ESG consideration.
- May require DOL to revise or withdraw any existing guidance or regulations inconsistent with the new statutory standard.
Who is affected
- Regulated: ERISA plan fiduciaries (plan sponsors, investment committees, asset managers acting as fiduciaries, proxy advisors when acting under fiduciary mandates).
- Beneficiaries: Participants and beneficiaries in private-sector retirement plans, whose accounts and plan assets are to be managed under the clarified pecuniary standard.
- Indirectly affected: Asset managers and financial product providers offering ESG-themed or impact-oriented investments to ERISA plans.
Funding and timelines
- The bill does not create new federal spending programs or dedicated appropriations; implementation is absorbed within DOL’s existing enforcement and regulatory resources.
- Effective dates and any transition or compliance periods would be set by the statutory text and subsequent DOL guidance or rulemaking; the bill’s main impact is immediate clarification and tightening of fiduciary standards once enacted.
Yea (213)
K
Ken Calvert
S
Scott Franklin
L
Lisa McClain
J
John Rutherford
D
David Schweikert
P
Pete Sessions
Nay (205)
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
