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119-hr-1996119th CongressWALLET

Retirement Proxy Protection Act

Sponsored By: Representative Houchin, Erin [R-IN-9]

Introduced

Summary

This bill would clarify ERISA to require fiduciaries to exercise shareholder rights only to advance the economic interests of plan participants and beneficiaries. It would set standards for when to vote proxies, require recordkeeping, and allow defined safe-harbor voting policies.

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  • Workers and retirees would see plan voting focused on financial returns rather than social or non-pecuniary goals, and voting or tender rights can be passed through to individual account holders when the plan terms allow.
  • Plan fiduciaries and investment managers would be required to act prudently and solely for the plan's economic interest, consider costs, evaluate material facts, keep records of proxy votes and influence attempts, and monitor any proxy advisory firms or managers they hire.
  • Plans may adopt a safe-harbor proxy voting policy that limits votes to proposals tied to an issuer's business or likely to materially affect value, and may refrain from voting when a plan's holdings in an issuer are below 5 percent.

Effective date: these rules would apply to exercises of shareholder rights on or after January 1, 2026.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

New rules for retirement plan proxy votes

If enacted, this would set clear rules for how retirement plan fiduciaries vote company shares. They would have to act only for participants’ financial benefit, weigh costs and facts, and keep records. They would not have to vote every proxy and would need to monitor investment managers and proxy advisers. Plans could adopt a voting policy, including a safe harbor to skip votes: focus only on proposals tied to business or value, or skip votes when the plan has under 5% in that company. This would not apply when voting rights pass through directly under an individual account plan, and would start on or after January 1, 2026.

Sponsors & CoSponsors

Sponsor

Houchin, Erin [R-IN-9]

IN • R

Cosponsors

  • Rep. Owens, Burgess [R-UT-4]

    UT • R

    Sponsored 3/10/2025

  • Rep. Grothman, Glenn [R-WI-6]

    WI • R

    Sponsored 3/10/2025

Roll Call Votes

No roll call votes available for this bill.

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