Protecting Prudent Investment of Retirement Savings Act

Floor Speech

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Mr. ALLEN. Mr. Speaker, I thank the chairman for yielding his time, for his tireless work on behalf of American workers, and specifically for his support of the legislation before us today.

Mr. Speaker, I rise in support of H.R. 2988, the Protecting Prudent Investment of Retirement Savings Act, legislation I introduced earlier this year to ensure hardworking Americans do not have their retirement savings jeopardized by politically motivated mismanagement. What I am hearing is that, I think, this bill fixes everything that the other side has been talking about as far as free markets and capitalism.

For those listening at home, it is important to understand how we got here. In 2022, the Biden administration heavy-handedly put the retirement security of over 150 million Americans at risk by issuing a deeply flawed rule to enable retirement plan fiduciaries to consider or choose investments based on environmental, social, and governance, or ESG, factors. That is not free market. That is not capitalism.

It is proven that ESG factors often charge steeper fees, carry higher risks, have lower returns, and are well-known underperformers. That is precisely why this rule garnered bipartisan, bicameral disapproval in the form of a Congressional Review Act resolution that passed both the House and Senate.

However, the Biden-Harris administration vetoed the resolution, choosing to prioritize leftwing environmental and social issues ahead of retirees' financial security.

As chairman of the HELP Subcommittee, I remain committed to protecting the retirement savings of workers, retirees, and their families. The Protecting Prudent Investment of Retirement Savings Act would codify that retirement plan sponsors must make investment decisions solely based on economic factors and financial returns.

Additionally, the bill states that the decision to exercise a shareholder right is subject to the purchase and loyalty duties under ERISA. It states that proxies held by ERISA plans must be voted in the economic interests of the plan, not used to advance radical policies and favors to crony capitalists.

The bill declares that race, color, religion, sex, or national origin may not be taken into consideration when selecting a fiduciary, counsel, employee, or service provider of an ERISA plan.

Lastly, it implements a notice requirement on defined contribution plans, explaining the difference between choosing from investments selected by ERISA fiduciaries and choosing from investments through a brokerage window.

Mr. Speaker, I think most would agree that advancing a political agenda at the expense of retirement savings is wrong. Let's be clear: Americans invest to secure a brighter future for themselves and their families, not to bankroll Democrats' radical initiatives and pet projects and take care of their crony capitalists.

Retirement plan sponsors have a duty to prioritize financial returns, ensuring Americans' hard-earned savings are invested in a sensible manner. The Protecting Prudent Investment of Retirement Savings Act delivers a significant win to retirees across the Nation, and I strongly urge my colleagues on both sides of the aisle to support its passage.

I thank my staff for their diligent work on this bill. I thank Chairman Walberg for his support throughout the committee process and Leader Scalise and Speaker Johnson for bringing H.R. 2988 to the House floor.

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