LANSING — The U.S. House has passed legislation aimed at limiting the use of environmental, social and governance factors in retirement investing.
The bill, known as the Protecting Prudent Investment of Retirement Savings Act, was approved Thursday and is sponsored by Republican Rick Allen. Supporters say the measure reinforces existing federal law requiring retirement plan fiduciaries to focus solely on financial returns.
House Education and Workforce Committee Chairman Tim Walberg of Michigan said the bill restores clarity to fiduciary standards under the Employee Retirement Income Security Act, also known as ERISA, after changes made under the Biden administration.
Under the legislation, investment decisions and proxy voting by ERISA-covered plans would be limited to economic considerations. The bill also prohibits the use of race, religion, sex or national origin when selecting plan fiduciaries or service providers.
The measure includes new disclosure requirements for retirement plans offering brokerage windows.
The bill now heads to the U.S. Senate for consideration.