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 the use of environmental, social, and governance (ESG) or other non-pecuniary factors in retirement plan investment decisions and proxy voting.
Core provisions
- Codifies that ERISA fiduciaries (e.g., plan sponsors, investment managers of 401(k)s and pensions) must base investment decisions and proxy voting solely on “pecuniary” (financial) factors—those expected to materially affect risk or return.
- Prohibits fiduciaries from subordinating participants’ and beneficiaries’ financial interests to any non-pecuniary objective, including ESG, social, political, or policy goals.
- Bars use of “tie-breaker” rules that allow ESG or similar factors to decide between investments with comparable risk/return; instead, fiduciaries must choose based on best expected financial outcome alone.
- Requires that proxy voting and other shareholder rights be exercised only when the fiduciary prudently determines the action will likely enhance or protect the plan’s economic interests; prohibits using plan assets to advance non-financial policy preferences through proxy votes or corporate engagement.
- Limits consideration of collateral benefits in selecting investment options for participant-directed plans (e.g., 401(k) menus), reinforcing that lineups must be constructed on financial criteria.
Agencies and authorities
- Directly affects the U.S. Department of Labor (DOL), which administers ERISA. The bill effectively overrides or narrows DOL regulations that permit or encourage consideration of ESG or other non-pecuniary factors, and constrains future rulemaking by embedding stricter fiduciary standards in statute.
- No new agency is created; enforcement remains with DOL’s Employee Benefits Security Administration (EBSA).
Beneficiaries and regulated parties
- Regulated: ERISA-covered retirement plan fiduciaries (private-sector defined benefit and defined contribution plans), asset managers serving these plans, and proxy advisory firms acting under fiduciary authority.
- Beneficiaries: Plan participants and beneficiaries, whose retirement assets must be managed under a clarified, finance-only fiduciary standard.
Funding and timelines
- The bill authorizes no new appropriations; implementation relies on existing DOL resources.
- Provisions generally take effect upon enactment, with DOL expected to conform existing regulations and guidance within specified transition periods (not detailed in the summary text).
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
