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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7780 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 7780

    To amend the Internal Revenue Code of 1986 to prohibit certain 
   retirement plans from making investment decisions on the basis of 
         factors other than financial risk and return factors.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 21, 2024

Mr. Murphy (for himself, Mr. Kelly of Pennsylvania, Ms. Tenney, and Ms. 
  Van Duyne) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
    To amend the Internal Revenue Code of 1986 to prohibit certain 
   retirement plans from making investment decisions on the basis of 
         factors other than financial risk and return factors.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safeguarding Investment Options for 
Retirement Act''.

SEC. 2. PROHIBITION ON CERTAIN RETIREMENT PLANS FROM MAKING INVESTMENT 
              DECISIONS ON THE BASIS OF FACTORS OTHER THAN FINANCIAL 
              RISK AND RETURN FACTORS.

    (a) In General.--Section 401(a) of the Internal Revenue Code of 
1986 is amended by inserting after paragraph (39) the following new 
paragraph:
            ``(40) Prohibition on consideration of factors other than 
        financial risk and return factors.--For purposes of this 
        subsection, the term `exclusive benefit' shall include a 
        requirement that the corpus and income of the trust are 
        invested exclusively on the basis of financial risk and return 
        factors.''.
    (b) Application to Annuity Contracts.--Section 403(b)(1) of such 
Code is amended by striking ``and'' at the end of subparagraph (D), by 
adding ``and'' at the end of subparagraph (E), and by inserting after 
subparagraph (E) the following new subparagraph:
                    ``(F) the corpus and income invested pursuant to 
                such contract are invested exclusively on the basis of 
                financial risk and return factors,''.
    (c) Application to Governmental Plans.--Section 457(e) of such Code 
is amended by adding at the end the following new paragraph:
            ``(19) Prohibition on governmental plans considering 
        factors other than financial risk and return factors.--In the 
        case of an employer described in subsection (e)(1)(A), a plan 
        shall not be treated as meeting the requirements of this 
        section unless the corpus and income of the plan are invested 
        exclusively on the basis of financial risk and return 
        factors.''.
    (d) Administration by Treasury.--Sections 401(a)(40), 403(b)(1)(F), 
and 457(e)(19) of the Internal Revenue Code of 1986 (as amended by this 
section) shall be administered exclusively by the Secretary of the 
Treasury or the Secretary's delegate.
    (e) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the date of the enactment of this 
Act.
                                 <all>
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