U.S. Senators Bill Cassidy (R-LA), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, and Jim Banks (R-IN) have introduced new legislation aimed at changing how retirement savings are managed for American workers. The bills are intended to restrict the influence of political ideology in decisions made by fiduciaries responsible for retirement plans.
“Fiduciaries’ sole responsibility is to prioritize what is best for the workers’ hard-earned savings,” said Dr. Cassidy. “These pro-worker, pro-family bills protect millions of Americans’ retirement savings from political ideology.”
Senator Banks stated, “Americans work hard for their retirement, and their money should be working for them, not to fund the Left’s woke agenda. This bill makes sure retirees know exactly where their savings are going so they can invest with confidence and common sense.”
The Restoring Integrity in Fiduciary Duty Act, led by Cassidy, would limit fiduciaries to considering only financial factors when making investment decisions on behalf of plan participants. It also clarifies that if two investments are identical in all respects except non-financial factors, fiduciaries may choose randomly between them. Additionally, it reaffirms that the duties under ERISA—specifically prudence and loyalty—apply to shareholder rights and proxy voting.
Banks’ Providing Complete Information to Retirement Investors Act would require employer-sponsored defined contribution plans to clearly explain the differences between investments selected by ERISA fiduciaries and those chosen independently through a brokerage window. Participants would receive notices whenever they move funds into or out of such windows indicating these investments were not selected by a fiduciary and could carry more risk or lower returns. This measure previously passed the House as part of a broader effort called the Roll back ESG To Increase Retirement Earnings Act.
Cassidy has been critical of environmental, social, and governance (ESG) investment rules enacted during President Biden’s administration. He supported a Congressional Review Act resolution against Biden’s ESG rule but was unsuccessful after a presidential veto. In response, he has continued efforts to remove ESG considerations from retirement planning policies.
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