HR2067-119

What This Bill Does

PARSA, the Protecting Americans' Retirement Savings Act, adds a national-security investment rule to ERISA fiduciary duties. Retirement plan fiduciaries may not knowingly allow a plan to acquire interests in, lend to, provide goods or services to, or transfer assets or participant-beneficiary data to a covered entity. Covered entities include foreign adversary entities and sanctioned entities. Existing investments and pre-enactment binding agreements may continue only if the plan makes new disclosures identifying sanctioned or foreign-adversary holdings, aggregate values, specific interests, investment vehicles, responsible fiduciaries, factors considered in maintaining the investment, and agreement expiration or termination details. The bill defines sanctioned entities by lists such as OFAC's NS-CMIC list, Defense Department Chinese military company list, Commerce Entity List, Denied Persons List, Unverified List, Military End User List, FCC Covered List, Uyghur Forced Labor Prevention Act Entity List, and CBP Withhold Release Orders and Findings List. The Secretary of Labor must issue regulations within 180 days, effective not later than one year after enactment.

Who Benefits and How

Retirement plan participants benefit because fiduciaries must avoid sending plan assets or participant data to foreign adversary or sanctioned entities. National security policymakers benefit because ERISA plans face investment restrictions tied to sanctions, export-control, forced-labor, defense, and telecom security lists. Compliance vendors benefit from demand for screening plan holdings, derivative exposures, and investment vehicles against covered-entity lists. Labor Department enforcement staff benefit from explicit disclosure fields and regulatory authority for foreign-adversary retirement holdings.

Who Bears the Burden and How

ERISA plan fiduciaries must screen investments, credit, services, facilities, data transfers, derivative exposures, and preexisting commitments. Asset managers serving retirement plans must identify sanctioned and foreign-adversary interests and responsible fiduciaries in annual reports. Foreign adversary companies and sanctioned entities lose access to ERISA plan capital and participant data. The Department of Labor must write implementing regulations within 180 days and enforce the expanded fiduciary rule.

Key Provisions

• Bars ERISA plan transactions that acquire interests in or transfer assets or participant data to covered entities.
• Defines covered entities to include foreign adversary entities and sanctioned entities on specified federal lists.
• Requires disclosure of existing sanctioned and foreign-adversary holdings, investment vehicles, values, fiduciaries, and binding commitments.
• Directs Labor Department regulations within 180 days, effective not later than one year after enactment.