Press Releases

Today, Chairman of the Health, Employment, Labor, and Pensions Subcommittee, Representative Rick W. Allen (GA-12), introduced the Protecting Prudent Investment of Retirement Savings Act.

This legislation seeks to codify that those who manage other people’s retirement savings under the Employee Retirement Income Security Act (ERISA) must prioritize maximizing returns for a secure retirement rather than political or social impact using risky environmental, social, and governance (ESG) factors. Upon the bill's introduction, Representative Allen issued the following statement:

"Americans' hard-earned retirement savings should never be jeopardized by politically-motivated mismanagement. Unfortunately, the Biden-Harris Administration made this possible with an overreaching rule that allows fiduciaries to aggressively invest retirees' money in ESG funds—which often charge steeper fees, carry higher risk, and have lower returns. The Protecting Prudent Investment of Retirement Savings Act would codify that retirement plan sponsors must make investment decisions solely based on financial returns—ensuring Americans' hard-earned savings are invested sensibly. I am grateful for Chairman Walberg's support in this effort to protect the American Dream for millions of workers and families," said Congressman Allen.

"Americans don’t work to have their hard-earned savings funneled into higher-risk, lower-yield ESG investments. The Biden-Harris administration’s misguided ESG policies allowed fiduciaries to play politics and steer retirees’ savings into left-wing investments for political and social purposes. I’m proud to support a bill, introduced by HELP Subcommittee Chairman Rick Allen, to protect Americans’ financial futures and promote retirees’ interest in a secure retirement—instead of out-of-touch ESG agendas," said Education and Workforce Committee Chairman Tim Walberg.

BACKGROUND: In 2022, President Biden’s Department of Labor finalized a flawed rule that allowed financial advisors to invest Americans’ retirement savings into risky, climate-related ESG funds. Despite bipartisan and bicameral disapproval in the form of a Congressional Review Act resolution that passed both the House and Senate, President Biden doubled down on this rulemaking by vetoing the resolution. In the 118th Congress, the House of Representatives also passed similar legislation championed by Congressman Allen, but the bill died in the Democrat-controlled Senate.