Requires retirement plan managers to base investment choices on financial factors

§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.

This bill would require those who manage employer-sponsored retirement plans, known as fiduciaries, to generally base investment decisions only on financial factors expected to affect an investment's risk or return.^2,3,4 Nonfinancial factors could be used only in limited cases, such as breaking a tie between otherwise equal options, and investment options that pursue nonfinancial goals could not be a plan's default choice.^2,3,4 It would also set duties for how plans vote the shares they own, bar discrimination in choosing plan service providers, and require notices before workers invest through brokerage accounts outside a plan's selected menu of investments.^2,3,4 The House passed it after adding a floor amendment requiring a Government Accountability Office study comparing returns from such brokerage-account investments with the plan's other options.^3,4

§2Status

§3How Congress voted

Why this matters: The official count.