To amend the Employee Retirement Income Security Act of 1974 to specify requirements concerning the consideration of pecuniary and non-pecuniary factors, and for other purposes.
Sponsors
Legislative Progress
Passed HouseMr. Allen introduced the following bill; which was referred to …
Passed House (inferred from eh version)
Summary
What This Bill Does
Amends ERISA to require retirement plan fiduciaries to base investment decisions solely on pecuniary (financial) factors. Prohibits subordinating participant interests to non-financial ESG goals.
Who Benefits and How
Retirement savers benefit from fiduciary focus on financial returns. Proponents argue workers' savings are protected from political considerations.
Who Bears the Burden and How
Plan fiduciaries face explicit restrictions on considering ESG factors. ESG investment strategies become harder to implement in ERISA plans.
Key Provisions
- Investment decisions based only on pecuniary factors
- Cannot sacrifice returns for non-pecuniary benefits
- Non-pecuniary factors only as tiebreaker when returns equal
- Must document use of any non-pecuniary factors
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Restricts ESG factors in ERISA retirement plan investments
Policy Domains
Legislative Strategy
"Prioritize financial returns over ESG considerations in retirement plans"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology