II 

118TH CONGRESS 

1ST SESSION S. 427 

To prohibit the Secretary of Labor from constraining the range or type 

of investments that may be offered to participants and beneficiaries 

of individual retirement accounts who exercise control over the assets 

in such accounts. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 15, 2023 

Mr. TUBERVILLE (for himself, Ms. LUMMIS, Mr. BRAUN, Mr. SCOTT of Florida, and Mrs. BRITT) introduced the following bill; which was read twice 

and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To prohibit the Secretary of Labor from constraining the 

range or type of investments that may be offered to 

participants and beneficiaries of individual retirement accounts who exercise control over the assets in such accounts. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Financial Freedom Act 

5 of 2023’’. 


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1 SEC. 2. FIDUCIARY DUTIES WITH RESPECT TO PENSION 

2 PLAN INVESTMENTS. 

3 Section 404(a) of the Employee Retirement Income 

4 Security Act of 1974 (29 U.S.C. 1104(a)) is amended by 

5 adding at the end the following: 

6 ‘‘(3)(A) In the case of a pension plan that provides 

7 for individual accounts and permits a participant or bene8 ficiary to exercise control over the assets in the partici9 pant’s or beneficiary’s account, nothing in paragraph 

10 (1)— 

11 ‘‘(i) requires a fiduciary to select, or prohibits 

12 a fiduciary from selecting, any particular type of in13 vestment alternative, provided that a fiduciary pro14 vides the participant or beneficiary an opportunity to 

15 choose, from a broad range of investment alter16 natives, the manner in which some or all of the as17 sets of the participant’s or beneficiary’s account are 

18 invested, according to regulations prescribed by the 

19 Secretary; or 

20 ‘‘(ii) requires that any particular type of invest21 ment be either favored or disfavored, other than on 

22 the basis of the investment’s risk-return characteris23 tics, in the context of the plan fiduciary’s objective 

24 of providing investment alternatives suitable for pro25 viding benefits for participants and beneficiaries. 


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•S 427 IS

1 ‘‘(B) In the event that a fiduciary selects a self-di2 rected brokerage window as an investment alternative for 

3 a plan described in subparagraph (A)— 

4 ‘‘(i) the Secretary shall not issue any regula5 tions or subregulatory guidance constraining or pro6 hibiting the range or type of investments that may 

7 be offered through such brokerage window; 

8 ‘‘(ii) subsection (c) shall apply to such self-di9 rected brokerage window; and 

10 ‘‘(iii) the diversification requirement of para11 graph (1)(C) and the prudence requirement of para12 graph (1)(B) are not violated by the fiduciary’s se13 lection of a self-directed brokerage window as an in14 vestment alternative or as a result of the exercise of 

15 a participant or beneficiary’s control over the assets 

16 in such self-directed brokerage window.’’. 

Æ 


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