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SEC. 1002. LIMITATION ON CONSIDERATION OF NON-PECU-
NIARY 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
FAC-
TORS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), a fiduciary shall be considered to act 
solely in the interest of the participants and 
beneficiaries of the plan with respect to an in-
vestment or investment course of action only if 
the fiduciary’s action with respect to such in-
vestment or investment course of action is 
based only on pecuniary factors (except as pro-
vided 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 objec-
tives 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. 
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‘‘(B) USE
OF
NON-PECUNIARY
FACTORS 
FOR
INVESTMENT
ALTERNATIVES.—Notwith-
standing paragraph (A), if a fiduciary is unable 
to distinguish between or among investment al-
ternatives or investment courses of action on 
the basis of pecuniary factors alone, the fidu-
ciary may use non-pecuniary factors as the de-
ciding factor if the fiduciary documents— 
‘‘(i) why pecuniary factors were not 
sufficient to select a plan investment or in-
vestment course of action; 
‘‘(ii) how the selected investment com-
pares 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 in-
terests of the participants and beneficiaries 
in their retirement income or financial ben-
efits under the plan. 
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‘‘(C) INVESTMENT
ALTERNATIVES
FOR 
PARTICIPANT-DIRECTED
INDIVIDUAL
ACCOUNT 
PLANS.—In selecting or retaining investment 
options for a pension plan described in sub-
section (c)(1)(A), a fiduciary is not prohibited 
from considering, selecting, or retaining an in-
vestment option on the basis that such invest-
ment option promotes, seeks, or supports one or 
more non-pecuniary benefits or goals, if— 
‘‘(i) the fiduciary satisfies the require-
ments 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 com-
ponent of, a default investment under sub-
section (c)(5) (or any other default invest-
ment alternative) if its investment objec-
tives 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: 
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‘‘(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 invest-
ment based on appropriate investment ho-
rizons consistent with the plan’s invest-
ment objectives and the funding policy es-
tablished pursuant to section 402(b)(1). 
‘‘(ii) The term ‘investment course of 
action’ means any series or program of in-
vestments or actions related to a fidu-
ciary’s performance of the fiduciary’s in-
vestment duties, and includes the selection 
of an investment fund as a plan invest-
ment, or in the case of an individual ac-
count plan, a designated investment alter-
native 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 enact-
ment of this Act. 
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DIVISION 
B—NO 
DISCRIMINA-
TION 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 In-
come 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 sub-
paragraph: 
‘‘(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.’’. 
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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 Re-
tirement Income Security Act of 1974 (29 U.S.C. 1104) 
is amended by adding at the end the following new sub-
section: 
‘‘(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 in-
cludes the management of shareholder rights 
appurtenant to those shares, including the right 
to vote proxies. When deciding whether to exer-
cise a shareholder right and in exercising such 
right, including the voting of proxies, a fidu-
ciary must act prudently and solely in the inter-
ests 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. 
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cise of a shareholder right, including any 
attempt to influence management; and 
‘‘(B) shall not subordinate the interests of 
participants and beneficiaries in their retire-
ment 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 partici-
pants and beneficiaries. 
‘‘(3) MONITORING.—A fiduciary shall exercise 
prudence and diligence in the selection and moni-
toring of a person, if any, selected to advise or oth-
erwise assist with the exercise of shareholder rights, 
including by providing research and analysis, rec-
ommendations on exercise of proxy voting or other 
shareholder rights, administrative services with re-
spect to voting proxies, and recordkeeping and re-
porting services. 
‘‘(4) INVESTMENT MANAGERS AND PROXY ADVI-
SORY FIRMS.—Where the authority to vote proxies 
or exercise other shareholder rights has been dele-
gated to an investment manager pursuant to section 
403(a), or a proxy voting advisory firm or other per-
son who performs advisory services as to the voting 
of proxies or the exercise of other shareholder rights, 
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a responsible plan fiduciary shall prudently monitor 
the proxy voting activities of such investment man-
ager or advisory firm and determine whether such 
activities are in compliance with paragraphs (1) and 
(2). 
‘‘(5) VOTING POLICIES.— 
‘‘(A) IN GENERAL.—In deciding whether to 
vote a proxy pursuant to this subsection, the 
plan fiduciary may adopt a proxy voting policy, 
including a safe harbor proxy voting policy de-
scribed in subparagraph (B), providing that the 
authority to vote a proxy shall be exercised pur-
suant to specific parameters designed to serve 
the economic interest of the plan. 
‘‘(B) SAFE
HARBOR
VOTING
POLICY.— 
With respect to a decision not to vote a proxy, 
a fiduciary shall satisfy the fiduciary respon-
sibilities under this subsection if such fiduciary 
adopts and is following a safe harbor proxy vot-
ing policy that— 
‘‘(i) limits voting resources to par-
ticular types of proposals that the fiduciary 
has prudently determined are substantially 
related to the business activities of the 
issuer or are expected to have a material 
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effect on the value of the plan investment; 
or 
‘‘(ii) establishes that the fiduciary will 
refrain from voting on proposals or par-
ticular types of proposals when the assets 
of a plan invested in the issuer relative to 
the total assets of such plan are below 5 
percent (or, in the event such assets are 
under management, when the assets under 
management invested in the issuer are 
below 5 percent of the total assets under 
management). 
‘‘(C) EXCEPTION.—No proxy voting policy 
adopted pursuant to this paragraph shall pre-
clude a fiduciary from submitting a proxy vote 
when the fiduciary determines that the matter 
being voted on is expected to have a material 
economic effect on the investment performance 
of a plan’s portfolio (or the investment perform-
ance of assets under management in the case of 
an investment manager); provided, however, 
that in all cases compliance with a safe harbor 
voting policy shall be presumed to satisfy fidu-
ciary responsibilities with respect to decisions 
not to vote. 
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‘‘(6) REVIEW.—A fiduciary shall periodically re-
view any policy adopted under this subsection.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to an exercise of shareholder 
rights occurring on or after January 1, 2024. 
DIVISION D—PROVIDING COM-
PLETE INFORMATION TO RE-
TIREMENT INVESTORS 
SEC. 4001. SHORT TITLE. 
This division may be cited as the ‘‘Providing Com-
plete Information to Retirement Investors Act’’. 
SEC. 4002. BROKERAGE WINDOW DISCLOSURES. 
(a) IN GENERAL.—Section 404(c) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1104(c)) is amended by adding at the end the following 
new paragraph: 
‘‘(7) NOTICE REQUIREMENTS FOR BROKERAGE 
WINDOWS.— 
‘‘(A) IN GENERAL.—In the case of a pen-
sion plan which provides for individual accounts 
and which provides a participant or beneficiary 
the opportunity to choose from designated in-
vestment alternatives, a participant or bene-
ficiary shall not be treated as exercising control 
over assets in the account of the participant or 
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beneficiary unless, with respect to any invest-
ment arrangement that is not a designated in-
vestment alternative, each time before such a 
participant or beneficiary directs an investment 
into, out of, or within such investment arrange-
ment, such participant is notified of, and ac-
knowledges, each element of the notice de-
scribed under paragraph (B). 
‘‘(B) NOTICE.—The notice described under 
this paragraph is a four part information that 
is substantially similar to the following informa-
tion: 
‘‘1. Your retirement plan offers designated investment alternatives prudently 
selected and monitored by fiduciaries for the purpose of enabling you to con-
struct an appropriate retirement savings portfolio. In selecting and moni-
toring designated investment alternatives, your plan’s fiduciary considers the 
risk of loss and the opportunity for gain (or other return) compared with 
reasonably available investment alternatives. 
2. The investments available through this investment arrangement are not des-
ignated investment alternatives, and have not been prudently selected and 
are not monitored by a plan fiduciary. 
3. Depending on the investments you select through this investment arrange-
ment, you may experience diminished returns, higher fees, and higher risk 
than if you select from the plan’s designated investment alternatives. 
4. The following is a hypothetical illustration of the impact of return at 4 per-
cent, 6 percent, and 8 percent on your account balance projected to age 67. 
‘‘(C) 
ILLUSTRATION.—The 
notice 
de-
scribed under paragraph (B) shall also include 
a graph displaying the projected retirement bal-
ances of such participant or beneficiary at age 
67 if the account of such individual were to 
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achieve an annual return equal to each of the 
following: 
‘‘(i) 4 percent. 
‘‘(ii) 6 percent. 
‘‘(iii) 8 percent.’’. 
(b) DESIGNATED INVESTMENT ALTERNATIVE DE-
FINED.—Section 3 of such Act (29 U.S.C. 1002) is 
amended by adding at the end the following new para-
graph: 
‘‘(46) 
DESIGNATED
INVESTMENT
ALTER-
NATIVE.— 
‘‘(A) IN GENERAL.—The term ‘designated 
investment alternative’ means any investment 
alternative designated by a responsible fiduciary 
of an individual account plan described in sub-
section 404(c) into which participants and bene-
ficiaries may direct the investment of assets 
held in, or contributed to, their individual ac-
counts. 
‘‘(B) EXCEPTION.—The term ‘designated 
investment alternative’ does not include broker-
age windows, self-directed brokerage accounts, 
or similar plan arrangements that enable par-
ticipants and beneficiaries to select investments 
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beyond those designated by a responsible plan 
fiduciary.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on January 1, 2025. 
Passed the House of Representatives September 18, 
2024. 
Attest: 
KEVIN F. MCCUMBER, 
Clerk. 
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