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HR 2988

Protecting Prudent Investment of Retirement Savings Act

119th Congress Introduced by Rick Allen

HR 2988 ensures fiduciaries prioritize financial returns in retirement investments, boosts transparency, and protects savers from discrimination in service provider selection.

Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-421.
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Bill Summary · HR 2988

Summary of HR 2988: Protecting Prudent Investment of Retirement Savings Act

Introduction

The Protecting Prudent Investment of Retirement Savings Act (HR 2988) was introduced in the House on April 24, 2025. The bill aims to enhance the management of retirement savings by fiduciaries, ensuring that investment decisions are made primarily based on financial factors rather than non-pecuniary considerations.

Main Purpose and Intent

The primary intent of HR 2988 is to safeguard the financial interests of retirement savers by:
- Limiting the influence of non-financial factors in investment decisions made by fiduciaries.
- Ensuring that retirement benefits are administered without discrimination.
- Protecting the rights of shareholders in retirement plans.
- Providing comprehensive information to retirement investors.

Key Provisions

The bill is organized into several divisions, each addressing specific aspects of retirement savings management:

Division A: Increase Retirement Earnings

  • Sec. 1001: Short title for this division.
  • Sec. 1002: Establishes limitations on fiduciaries' consideration of non-pecuniary factors when making investment decisions, emphasizing a focus on maximizing financial returns.

Division B: No Discrimination in My Benefits

  • Sec. 2001: Short title for this division.
  • Sec. 2002: Outlines guidelines for the selection of service providers for retirement plans, ensuring that all providers are chosen based on merit rather than discriminatory practices.

Division C: Retirement Proxy Protection

  • Sec. 3001: Short title for this division.
  • Sec. 3002: Affirms the right of retirement plan fiduciaries to exercise shareholder rights, thereby enabling them to vote on corporate matters that may affect the value of investments.

Division D: Providing Complete Information to Retirement Investors

  • Sec. 4001: Short title for this division.
  • Sec. 4002: Mandates enhanced disclosures for brokerage windows, ensuring that retirement investors receive clear and comprehensive information about their investment options.

Who Would Be Affected

The bill primarily impacts:
- Fiduciaries managing retirement plans, who will need to adjust their investment strategies to comply with the new limitations on non-pecuniary factors.
- Retirement savers who will benefit from improved transparency and potentially higher returns on their investments.
- Service providers in the retirement sector, who will be subject to new selection criteria.

Legislative Process and Timeline

  • The bill was referred to the House Committee on Education and Workforce on its introduction date.
  • A Committee Consideration and Mark-up Session was held on June 25, 2025, where the bill was ordered to be reported (amended) with a vote of 21 - 15.

Conclusion

HR 2988 seeks to enhance the prudence and transparency of retirement savings management, ensuring that fiduciaries prioritize financial returns and provide equitable treatment to all service providers. As the bill progresses through the legislative process, its implications for retirement savings and fiduciary responsibilities will be closely monitored.

Compiled from official sources — confirm details with the bill’s official record.

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