ROLL BACK ESG TO INCREASE RETIREMENT EARNINGS ACT

On 2024-09-18, Representative Rick W. Allen (R-GA-12) delivered a floor speech titled "ROLL BACK ESG TO INCREASE RETIREMENT EARNINGS ACT" in the House. The speech addressed civil rights. It referenced legislation including HR5339, HR4655, HR4767, among other bills.

ROLL BACK ESG TO INCREASE RETIREMENT EARNINGS ACT

Congressional Record, Volume 170 Issue 145 (Wednesday, September 18, 2024) [Congressional Record Volume 170, Number 145 (Wednesday, September 18, 2024)] [House] [Pages H5343-H5350] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] ROLL BACK ESG TO INCREASE RETIREMENT EARNINGS ACT Ms. FOXX. Mr. Speaker, pursuant to House Resolution 1455, I call up the bill (H.R. 5339) 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, and ask for its immediate consideration in the House. The Clerk read the title of the bill. The SPEAKER pro tempore (Mr. Smith of Nebraska). Pursuant to House Resolution 1455, in lieu of the amendment in the nature of a substitute recommended by the Committee on Education and the Workforce, printed in the bill, an amendment in the nature of a substitute consisting of the text of Rules Committee Print 118-50 shall be considered as adopted and the bill, as amended, is considered read. The text of the bill, as amended, is as follows: H.R. 5339 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Protecting Americans' Investments from Woke Policies Act''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. DIVISION A--ROLL BACK ESG TO INCREASE RETIREMENT EARNINGS Sec. 1001. Short title. Sec. 1002. Limitation on consideration of non-pecuniary factors by fiduciaries. DIVISION B--NO DISCRIMINATION IN MY BENEFITS Sec. 2001. Short title. Sec. 2002. Service provider selection. DIVISION C--RETIREMENT PROXY PROTECTION Sec. 3001. Short title. Sec. 3002. Exercise of shareholder rights. DIVISION D--PROVIDING COMPLETE INFORMATION TO RETIREMENT INVESTORS Sec. 4001. Short title. Sec. 4002. Brokerage window disclosures. DIVISION A--ROLL BACK ESG TO INCREASE RETIREMENT EARNINGS SEC. 1001. SHORT TITLE. This division may be cited as the ``Roll back ESG To Increase Retirement Earnings Act'' or the ``RETIRE Act''. SEC. 1002. LIMITATION ON CONSIDERATION OF NON-PECUNIARY FACTORS BY FIDUCIARIES. (a) In General.--Section 404(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)) is amended by adding at the end the following: ``(3) Interest based on pecuniary factors.-- ``(A) In general.--For purposes of paragraph (1), a fiduciary shall be considered to act solely in the interest of the participants and beneficiaries of the plan with respect to an investment or investment course of action only if the fiduciary's action with respect to such investment or investment course of action is based only on pecuniary factors (except as provided in subparagraph (B)). The fiduciary may not subordinate the interests of the participants and beneficiaries in their retirement income or financial benefits under the plan to other objectives and may not sacrifice investment return or take on additional investment risk to promote non-pecuniary benefits or goals. The weight given to any pecuniary factor by a fiduciary shall reflect a prudent assessment of the impact of such factor on risk and return. ``(B) Use of non-pecuniary factors for investment alternatives.--Notwithstanding paragraph (A), if a fiduciary is unable to distinguish between or among investment alternatives or investment courses of action on the basis of pecuniary factors alone, the fiduciary may use non-pecuniary factors as the deciding factor if the fiduciary documents-- ``(i) why pecuniary factors were not sufficient to select a plan investment or investment course of action; ``(ii) how the selected investment compares to the alternative investments with regard to the composition of the portfolio with regard to diversification, the liquidity and current return of the portfolio relative to the anticipated cash flow requirements of the plan, and the projected return of the portfolio relative to the funding objectives of the plan; and ``(iii) how the selected non-pecuniary factor or factors are consistent with the interests of the participants and beneficiaries in their retirement income or financial benefits under the plan. ``(C) Investment alternatives for participant-directed individual account plans.--In selecting or retaining investment options for a [[Page H5344]] pension plan described in subsection (c)(1)(A), a fiduciary is not prohibited from considering, selecting, or retaining an investment option on the basis that such investment option promotes, seeks, or supports one or more non-pecuniary benefits or goals, if-- ``(i) the fiduciary satisfies the requirements of paragraph (1) and subparagraphs (A) and (B) of this paragraph in selecting or retaining any such investment option; and ``(ii) such investment option is not added or retained as, or included as a component of, a default investment under subsection (c)(5) (or any other default investment alternative) if its investment objectives or goals or its principal investment strategies include, consider, or indicate the use of one or more non-pecuniary factors. ``(D) Definitions.--For the purposes of this paragraph: ``(i) The term `pecuniary factor' means a factor that a fiduciary prudently determines is expected to have a material effect on the risk or return of an investment based on appropriate investment horizons consistent with the plan's investment objectives and the funding policy established pursuant to section 402(b)(1). ``(ii) The term `investment course of action' means any series or program of investments or actions related to a fiduciary's performance of the fiduciary's investment duties, and includes the selection of an investment fund as a plan investment, or in the case of an individual account plan, a designated investment alternative under the plan.''. (b) Effective Date.--The amendments made by this section shall apply to actions taken by a fiduciary on or after the date that is 12 months after the date of enactment of this Act. DIVISION B--NO DISCRIMINATION IN MY BENEFITS SEC. 2001. SHORT TITLE. This division may be cited as the ``No Discrimination in My Benefits Act''. SEC. 2002. SERVICE PROVIDER SELECTION. Section 404(a)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)(1)) is amended-- (1) in subparagraph (C), by striking ``and''; (2) in subparagraph (D), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following new subparagraph: ``(E) by selecting, monitoring, and retaining any fiduciary, counsel, employee, or service provider of the plan-- ``(i) in accordance with subparagraphs (A) and (B); and ``(ii) without regard to race, color, religion, sex, or national origin.''. DIVISION C--RETIREMENT PROXY PROTECTION SEC. 3001. SHORT TITLE. This division may be cited as the ``Retirement Proxy Protection Act''. SEC. 3002. EXERCISE OF SHAREHOLDER RIGHTS. (a) In General.--Section 404 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104) is amended by adding at the end the following new subsection: ``(f) Exercise of Shareholder Rights.-- ``(1) Authority to exercise shareholder rights.-- ``(A) In general.--The fiduciary duty to manage plan assets that are shares of stock includes the management of shareholder rights appurtenant to those shares, including the right to vote proxies. When deciding whether to exercise a shareholder right and in exercising such right, including the voting of proxies, a fiduciary must act prudently and solely in the interests of participants and beneficiaries and for the exclusive purpose of providing benefits to participants and beneficiaries and defraying the reasonable expenses of administering the plan. The fiduciary duty to manage shareholder rights appurtenant to shares of stock does not require the voting of every proxy or the exercise of every shareholder right. ``(B) Exception.--This subsection shall not apply to voting, tender, and similar rights with respect to securities that are passed through pursuant to the terms of an individual account plan to participants and beneficiaries with accounts holding such securities. ``(2) Requirements for exercise of shareholder rights.--A fiduciary, when deciding whether to exercise a shareholder right and when exercising a shareholder right-- ``(A) shall-- ``(i) act solely in accordance with the economic interest of the plan and its participants and beneficiaries; ``(ii) consider any costs involved; ``(iii) evaluate material facts that form the basis for any particular proxy vote or exercise of shareholder rights; and ``(iv) maintain a record of any proxy vote, proxy voting activity, or other exercise of a shareholder right, including any attempt to influence management; and ``(B) shall not subordinate the interests of participants and beneficiaries in their retirement income or financial benefits under the plan to any non-pecuniary objective, or promote non-pecuniary benefits or goals unrelated to those financial interests of the plan's participants and beneficiaries. ``(3) Monitoring.--A fiduciary shall exercise prudence and diligence in the selection and monitoring of a person, if any, selected to advise or otherwise assist with the exercise of shareholder rights, including by providing research and analysis, recommendations on exercise of proxy voting or other shareholder rights, administrative services with respect to voting proxies, and recordkeeping and reporting services. ``(4) Investment managers and proxy advisory firms.--Where the authority to vote proxies or exercise other shareholder rights has been delegated to an investment manager pursuant to section 403(a), or a proxy voting advisory firm or other person who performs advisory services as to the voting of proxies or the exercise of other shareholder rights, a responsible plan fidu

Referenced legislation: HRES1455, HRES1455, HR4655, HR4767, HR4790, HR4823, HR5337, HR5338, HR5339, HR5340