Protecting Americans’ Investments from Woke Policies Act

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sep 19, 2024

This bill requires fiduciaries of employer-sponsored retirement plans to base investment decisions primarily on pecuniary factors—those that a fiduciary determines are likely to materially affect investment risk or return based on the plan's investment horizons and policies. The bill permits consideration of nonpecuniary factors in limited cases: when selecting investment options for participant-directed retirement plans, or when fiduciaries cannot differentiate between investment alternatives using pecuniary factors alone.

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Roll back ESG To Increase Retirement Earnings Act or the RETIRE Act This bill generally requires fiduciaries of employer-sponsored retirement plans to make investment decisions based only on pecuniary factors (i.e., factors that a fiduciary prudently determines are expected to have a material effect on the risk or return of an investment based on appropriate investment horizons consistent with the plan's policies and objectives). The bill allows nonpecuniary factors to be considered in certain situations, such as when selecting investment options for certain participant-directed retirement plans or if the fiduciary is unable to distinguish between investment alternatives on the basis of pecuniary factors alone.