Limits retirement plan managers to financial factors in investing and proxy voting

§1What it does

Why this matters: A plain-English description of the bill as it was voted on, written by us from the official summary and text.

✎ Drafted by AI from the public sources cited. Each sentence links to its source.

The House passed a rewritten version of this bill that combines four measures setting rules for managers of employer-sponsored retirement plans under the Employee Retirement Income Security Act (ERISA).^2,3,4 Plan managers would have to base investment decisions only on financial factors; they could use other factors to choose between options they cannot tell apart on financial grounds, and in plans where workers pick their own investments they could offer options built around non-financial goals if those options meet the same financial tests, but not as the plan's default investment.^3,4 When voting shares the plan owns, managers would have to act only in the plan's financial interest, and they would have to pick the plan's service providers without regard to race, color, religion, sex or national origin.⁴ Plan managers would be shielded from liability for losses on investments workers choose through a brokerage window, which offers options beyond the plan's selected menu, only if the worker acknowledged, before each such choice, a notice that those options are not chosen or monitored by the plan and may bring lower returns, higher fees and higher risk.⁴

§2Status

§3How Congress voted

Why this matters: The official count.