Press Releases

Today, Education and Workforce Committee Chairman Tim Walberg (R-MI) applauded House passage of H.R. 2988, Protecting Prudent Investment of Retirement Savings Act, authored by Health, Employment, Labor, and Pensions Subcommittee Chairman Rick Allen (R-GA). 

The bill clarifies fiduciaries must prioritize maximizing retirement returns—not advancing political or social agendas like environmental, social, and governance (ESG) factors which are notorious underperformers and can leave the futures of retirees less secure.

“The Biden-Harris administration’s ESG rule abandoned longstanding fiduciary protections and allowed politics to creep into retirement investment decisions. This is an egregious mistake that puts the savings of retirees at risk. H.R. 2988 restores clarity and accountability by making clear that fiduciaries must put financial returns first. I’m proud to see this bill pass the House and urge my colleagues in the Senate to follow suit and restore common sense to retirement investing,” said Chairman Walberg.

BACKGROUND 
H.R. 2988, Protecting Prudent Investment of Retirement Savings Act:

• Clarifies that financial institutions must base decisions on an investment solely on economic factors.
• States that the decision to exercise a shareholder right is subject to the prudence and loyalty duties under the Employee Retirement Income Security Act (ERISA).
• States that proxies held by ERISA plans must be voted in the economic interest of the plan, not used to advance radical policies.
• Declares that race, color, religion, sex, or national origin may not be taken into consideration when selecting a fiduciary, counsel, employee, or service provider of an ERISA plan.
• Implements a notice requirement on defined contribution plans explaining the difference between choosing from investments selected by ERISA fiduciaries and choosing from investments through a brokerage window.

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