PARSA

House Votes

This bill aims to protect workers’ retirement savings. It would stop employer retirement plans (like 401(k)s) from investing in, lending to, or doing business with “covered entities,” which include foreign adversary entities and sanctioned entities. It also blocks sending any plan money or any personal data about plan participants to those entities.

Plans that already hold these investments could keep them for now if they meet new disclosure rules. If a plan signed a binding deal before the law takes effect, it can finish that commitment until it ends or can be terminated—again, only if it follows the required disclosures. Plans must report any holdings tied to sanctioned or foreign adversary entities, including the value, names, how the investment is held, who made the decision, and why it’s being kept. They must also describe any ongoing agreements covered by the exception and identify which sanctions lists apply.

• Who is affected: Workers with employer retirement plans, plan administrators, and investment managers.
• What changes: No investing in or doing business with foreign adversary or sanctioned entities; no sharing participant data with them; detailed new disclosures of any existing ties and ongoing contracts.
• When: The Labor Department must issue rules within 180 days of enactment, and those rules must take effect within 1 year. Existing investments and pre‑existing contracts can continue temporarily if the plan meets the new reporting requirements.