H. R. 1119
IN THE HOUSE OF REPRESENTATIVES
February 21, 2023
Ms. DelBene (for herself, Mr. Casten, Mr. Vargas, and Mr. Phillips) introduced the following bill; which was referred to the Committee on Education and the Workforce
To amend the Employee Retirement Income Security Act of 1974 to permit retirement plans to consider certain factors in investment decisions.
This Act may be cited as the
Freedom to Invest in a Sustainable Future Act.
Subsection (a) of section 404 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104) is amended by adding at the end the following new paragraph:
Provided that a fiduciary discharges the fiduciary's duties with respect to a plan in a manner otherwise consistent with this subsection, a fiduciary may—
consider environmental, social, governance, or similar factors, in connection with carrying out an investment decision, strategy, or objective, or other fiduciary act; and
consider collateral environmental, social, governance, or similar factors as tie-breakers when competing investments can reasonably be expected to serve the plan’s economic interests equally well with respect to expected return and risk over the appropriate time horizon.
In a case described in clause (i) or (ii) of subparagraph (A), a fiduciary shall not be required to maintain any greater documentation, substantiation, or other justification of the fiduciary’s actions relating to such fiduciary act than is otherwise required under this part.
Nothing in this part shall preclude an investment selected in accordance with clause (i) or (ii) of subparagraph (A) from being treated as a default investment or a component of such a default investment (as described in regulations issued by the Secretary under subsection (c)(5)(A)), if such investment would otherwise qualify for such treatment under such regulations.