All Roll Calls
Yes: 419 • No: 415
HR2988119th CongressWALLET
Protecting Prudent Investment of Retirement Savings Act
Sponsored By: Representative Allen
Passed House
Summary
Prioritize financial interests in retirement investing. This bill would amend ERISA to strengthen fiduciary duties so investment choices put participants' financial interests first, restrict use of non-pecuniary goals, add anti-discrimination rules for service-provider selection, tighten proxy voting rules, and require clearer brokerage-window disclosures.
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- Workers and retirees: Fiduciaries must base plan investment selections on pecuniary factors likely to affect risk or return and cannot subordinate participants' retirement interests to non-pecuniary goals except in limited, documented cases. New rules apply to actions taken on or after 12 months after enactment.
- Plan managers and advisors: Fiduciaries must prudently manage shareholder voting, monitor investment managers and proxy advisory firms, and keep records. A safe harbor lets plans limit votes to matters tied to issuer business or skip votes when an issuer is under 5% of plan assets or assets under management. These proxy rules take effect on January 1, 2026.
- Brokerage-window investors and researchers: Plans must give a four-part notice before directing money into non-designated investments, including a hypothetical balance at ages and returns of 4%, 6%, and 8%. The bill also requires a Government Accountability Office study within 2 years comparing returns of non-designated arrangements with other plan options.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
New rules for your 401(k) and shareholder voting
If enacted, retirement plan fiduciaries would have to base investment choices on financial (pecuniary) factors. They would need to document why financial factors were not enough before using any non-financial factor, compare options on diversification, liquidity, cash needs, and returns, and show how the non-financial factor fits participants’ interests. Participant-directed plans would not be able to use a fund with non-financial goals as the default. Fiduciaries would have to manage shareholder rights, like voting, only for the plan’s economic interest, consider costs, keep records, and monitor advisors. Plans could use a safe harbor that votes only on matters tied to the issuer’s business or does not vote when the plan holds under 5% of the issuer. The proxy rules would apply to rights exercised on or after January 1, 2026, and the investment-factor rules would start 12 months after enactment. It would also bar choosing or keeping service providers based on race, color, religion, sex, or national origin.
Clear warnings before using brokerage windows
If enacted, your plan would have to give you a notice each time before you use a brokerage window. The notice would say the plan’s designated options are prudently selected and monitored. It would say brokerage-window choices are not selected or monitored by the plan and warn about potential lower returns, higher fees, and higher risk. It would show projected balances at age 67 using 4%, 6%, and 8% annual returns, with a graph. You would need to acknowledge this notice each time to be treated as controlling those assets. The definition change would take effect upon enactment, and the notice rule would start January 1, 2027.
Sponsors & CoSponsors
Sponsor
Allen
GA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
house vote • 1/15/2026
On Motion to Recommit
Yes: 206 • No: 210
house vote • 1/15/2026
On Passage
Yes: 213 • No: 205