Press Releases

Today, Education and Workforce Committee Chairman Tim Walberg (R-MI) spoke on the House Floor in support of H.R. 2988, Protecting Prudent Investment of Retirement Savings Act:

"I rise today to speak in support of H.R. 2988, the Protecting Prudent Investment of Retirement Savings Act, introduced by Representative Rick Allen, Chairman of the Subcommittee on Health, Employment, Labor, and Pensions.

"At its core, this legislation is about one simple principle: retirement savings should be managed to protect workers’ futures—not to advance political agendas.

"Over the past several years, the Biden-Harris administration pushed a rule that encouraged retirement plan fiduciaries to consider Environmental, Social, and Governance—ESG—factors when making investment decisions. That might sound harmless but in practice, it shifts the focus away from what retirement investing is supposed to be about: maximizing returns and minimizing risk for workers and retirees.

"Americans set aside money in their 401(k)s and pension plans to retire with dignity. They do it so they can pay their bills, cover medical costs, and support their families. They do not invest their hard-earned savings so federal bureaucrats can push ideological priorities.

"And that is exactly the concern here. ESG investing has become a tool for advancing a broader political agenda. Instead of asking, 'Is this the best investment for the worker?', the ESG framework often asks, 'Does this investment align with certain social or environmental goals?' But those goals are not what ERISA was created to promote.

"ERISA—the Employee Retirement Income Security Act—was established to ensure that fiduciaries act in the best interest of plan participants. It requires loyalty, prudence, and a clear focus on the financial outcomes that workers rely on.

"The problem with the Biden-Harris rule is that it created permission—and in many cases pressure—for fiduciaries to prioritize ESG factors over the economic interests of participants. And when that happens, retirement security is placed at risk.

"ESG funds are often higher cost, less transparent, and in many cases they underperform compared to traditional options. That means workers may be paying more and getting less—less growth, less stability, and less certainty about their future.

"This is not a theoretical issue. When a fiduciary chooses investments based on non-financial criteria, the person paying the price is not the bureaucrat in Washington or the corporate executive on a conference call. The person paying the price is the worker who depends on that retirement account to survive.

"That is why H.R. 2988 is needed.

"This bill restores the proper purpose of retirement investing: financial security. It makes clear that retirement plan decisions must be made based solely on economic factors—things like risk, return, liquidity, and diversification.

"It also addresses how fiduciaries use shareholder rights like proxy voting. Under current practices, some fiduciaries use the shares held in retirement plans to push political policies through proxy votes—whether or not those policies benefit the workers whose money is at stake.

"H.R. 2988 stops that. It makes clear that exercising shareholder rights—including proxy votes—must be done in the economic interest of plan participants. Not to advance radical political initiatives. Not to appease advocacy groups. And not to satisfy trends in corporate boardrooms.

"In addition, the bill strengthens fairness and nondiscrimination in the selection of service providers. It states clearly that race, color, religion, sex, or national origin may not be considered when selecting fiduciaries, counsel, employees, or service providers for ERISA plans.

"Retirement plan service providers should be chosen on performance and price—not on ideology or race-based preferences.

"Finally, H.R. 2988 increases transparency for workers. It includes a notice requirement for defined contribution plans that explains the difference between selecting investments chosen by ERISA fiduciaries and selecting investments through a brokerage window.

"Why does that matter? Because many workers do not realize when they move money into a brokerage window, they may be stepping outside the protections provided by plan fiduciaries. This bill ensures workers are informed and can make decisions with clarity.

"In short, H.R. 2988 is a course correction. It protects retirees from financial experimentation. It protects workers from political interference. And it reinforces the idea that retirement plans exist for one reason: to help Americans retire with stability and security."

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