Protecting Prudent Investment of Retirement Savings Act

Sponsor: Rick W. Allen (Republican-GA)April 24, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Sets new rules for how retirement plan managers invest your savings and choose partners.

This bill would set new rules for how the people managing your retirement savings make investment decisions, requiring them to focus mainly on financial returns. It would also make sure they pick service providers without discrimination and provide clear warnings for certain self-directed investments. These changes aim to protect and inform people saving for retirement.

What Would Change

Today, retirement plan managers must act in the best interest of plan members, but the rules for considering financial versus non-financial factors in investments are not always strictly defined. This bill would explicitly require managers to base investment decisions mainly on financial factors and would forbid them from sacrificing returns for non-financial goals. It would also add new rules for choosing service providers without discrimination and require clear warnings for people who pick their own investments through a plan's brokerage window, including projected retirement balances at age 67 for annual returns of 4 percent, 6 percent, and 8 percent.

Key Provisions

Requires retirement plan managers to base investment decisions mainly on financial returns, not other goals.
Forbids retirement plan managers from discriminating based on race, color, religion, sex, or national origin when choosing service providers.
Makes retirement plan managers vote company shares only to benefit the plan's financial interests.
Requires new warnings and projected returns for people who pick their own investments through a plan's brokerage window.
Would take effect for investment decisions 12 months after the bill becomes law.
Would take effect for shareholder rights on January 1, 2026.