Republicans in the House and Senate have reintroduced a bill to prohibit ERISA-covered retirement plans from making future investments in “foreign adversary countries,” including China, Russia, North Korea and Iran.
The Protecting Americans’ Retirement Savings Act, was introduced March 12 by Sen. Jim Banks, R-Ind., and Rep. John Moolenaar, R-Mich.
The bill would prevent ERISA plans, such as 401(k) plans, pension plans, deferred-compensation plans and profit-sharing plans, from collecting interest in, lending money to, engaging in transactions with or transferring plan data to entities associated with adversary countries.
The legislation also requires increased disclosure from ERISA fiduciaries that have existing investments in such entities or sanctioned firms. This includes a statement disclosing all assets in a sanctioned firm, with the name of the firm and why it was sanctioned; the aggregate value of, and specific investments in, any foreign adversary entity, and the investment vehicle through which the plan holds such investment"; and a statement explaining why the fiduciary continues to hold such investments, according to an accompanying news release.
“Many Americans’ retirement plans wrongly fund the militaries of our adversaries or foreign companies that aid in human rights abuses,” Banks said in a statement. “My bill would prevent these misguided investments and guarantee that Wall Street execs aren’t bankrolling our adversaries with the retirement funds of hardworking Americans.”
Banks originally introduced the bill in 2023 while he was a member of the House.
