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 narrow and clarify when retirement plan fiduciaries may consider environmental, social, and governance (ESG) or other non‑pecuniary factors in investment decisions and proxy voting.
Core provisions and authorities
- Codifies that ERISA fiduciaries must base investment decisions and proxy voting solely on “pecuniary factors” (i.e., material risk–return considerations) and may not subordinate participants’ financial interests to other objectives.
- Restricts use of non‑pecuniary factors to a true “tie‑breaker” situation, and tightens the standard for when investments are considered economically indistinguishable.
- Requires fiduciaries relying on non‑pecuniary factors to document:
- Why investments are economically indistinguishable;
- The specific non‑pecuniary factors used; and
- How those factors are consistent with participants’ interests.
- Limits fiduciary authority to use plan assets for proxy voting or other shareholder rights to circumstances where the action is expected to enhance or protect the economic value of the investment.
Agencies and programs affected
- Primarily affects the U.S. Department of Labor (DOL), which enforces ERISA fiduciary standards for private‑sector retirement plans (e.g., 401(k), pension plans).
- Directs DOL to interpret and enforce ERISA consistent with the bill’s stricter pecuniary‑only framework, likely requiring conforming regulations and guidance for plan sponsors and asset managers.
Who is covered or regulated
- ERISA plan fiduciaries: plan sponsors, trustees, investment committees, and asset managers with discretionary authority over plan assets.
- Indirectly affects service providers offering ESG‑branded funds or strategies to ERISA plans, and proxy advisory firms whose recommendations may involve ESG or other non‑financial considerations.
- Participants and beneficiaries of private‑sector retirement plans are the intended beneficiaries of the clarified duty to prioritize financial returns.
Timelines and implementation
- Provisions generally take effect upon enactment or on a specified date shortly thereafter, with DOL expected to issue implementing guidance and, if needed, updated regulations.
- Existing plan investment lineups and proxy voting policies may need review and revision within DOL‑specified transition periods to ensure compliance with the new standards.
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
