Restoring Integrity in Fiduciary Duty Act

Legislation Details

Amends the Employee Retirement Income Security Act of 1974 to clarify fiduciary responsibilities regarding shareholder rights.
Establishes that fiduciaries may evaluate investments based solely on pecuniary factors.
Prohibits fiduciaries from prioritizing nonpecuniary goals over the financial interests of participants and beneficiaries.
Requires fiduciaries to avoid sacrificing investment returns or increasing risks for nonpecuniary benefits.
Mandates that fiduciaries weigh pecuniary factors prudently in relation to risk and return.
Allows the use of nonpecuniary factors only when pecuniary factors do not sufficiently distinguish between investment options, under specific documentation requirements.
Defines “capita aut navia” as a random selection standard for investment alternatives when pecuniary factors are equal.
Specifies that fiduciaries can consider nonpecuniary benefits when selecting investment options for participant-directed plans, provided they meet certain criteria.
Clarifies definitions related to investment courses of action, material financial risks or returns, and pecuniary factors.
The amendments will take effect one year after the enactment of the legislation.