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.
Core provisions
- Codifies that ERISA fiduciaries must base investment decisions and proxy voting solely on “pecuniary” (financial) factors that materially affect risk and return over an appropriate time horizon.
- Prohibits fiduciaries from subordinating participants’ financial interests to non-pecuniary objectives, such as advancing social, environmental, or political goals.
- Bars use of collateral benefits (e.g., climate impact, labor practices, diversity goals) as tie-breakers between investments, unless they are demonstrably pecuniary.
- Requires that investment options in participant-directed plans (like 401(k)s) be selected and maintained based only on financial considerations; ESG-themed funds cannot be favored for non-financial reasons.
- Clarifies that proxy voting and other shareholder rights must be exercised solely in the economic interest of plan participants and beneficiaries, and not to promote non-pecuniary policy agendas.
Agencies and authorities
- Directly affects the U.S. Department of Labor (DOL), which enforces ERISA. The bill effectively narrows DOL’s regulatory discretion by embedding a strict pecuniary standard in statute, limiting future rules that would permit broader ESG consideration.
- Does not create new agencies or major new funding streams; implementation is through existing DOL enforcement and guidance mechanisms.
Who is affected
- Regulates ERISA plan fiduciaries: employers sponsoring retirement plans, plan trustees, investment managers, and proxy voting service providers acting as fiduciaries.
- Indirectly affects plan participants and beneficiaries by constraining the basis on which their retirement assets may be invested or voted.
- Asset managers and financial institutions offering ESG or “sustainable” products to ERISA plans must demonstrate a clear, primary financial rationale.
Timelines
- Provisions generally take effect upon enactment or after a short specified transition period (e.g., months) to allow plans to review and, if necessary, adjust investment lineups, policies, and service-provider contracts to comply with the pecuniary-only standard.
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
