Sponsor
John Moolenaar
Representative · R-MI
Representative · R-MI
The bill strengthens national-security and participant protections by restricting ties and disclosures to foreign-adversary entities and protecting participant data, but it raises compliance costs, legal liability, and disclosure/privacy risks that could reduce returns and disproportionately burden smaller plans.
Plan participants and taxpayers are less likely to have their retirement assets indirectly support hostile or sanctioned foreign actors because ERISA fiduciaries are barred from financial ties to covered foreign-adversary entities and reporting discourages such investments.
Plan participants' personal data and data flows tied to retirement plans are restricted from transfer to foreign adversaries or sanctioned entities, reducing espionage and privacy risks.
Participants and beneficiaries gain clearer, required disclosure about whether their retirement funds hold investments linked to sanctioned or foreign-adversary entities, improving transparency and enabling more informed choices.
Plan sponsors, administrators, and fiduciaries will incur substantial new compliance and administrative costs to screen, track, value, and report indirect or derivative interests, which can reduce net returns for participants and raise fees—especially harming smaller plans and their participants.
Expanding who counts as a fiduciary for data control and the accelerated implementation timeline increase liability, legal uncertainty, and the risk of litigation for plan sponsors, third‑party administrators, vendors, and fiduciaries.
Detailed public disclosures required by the bill could reveal sensitive investment strategies or counterparties, harming fiduciaries' competitive position and raising privacy or market-competition concerns for managers and federal employees involved in plan management.
Based on analysis of 3 sections of legislative text.
Bars ERISA plan fiduciaries from transacting with or transferring data to designated foreign-adversary or sanctioned entities and mandates new annual disclosures of such holdings and agreements.
Official title: To amend the Employment Retirement Income Security Act of 1974 to prohibit plan investments in foreign adversary and sanctioned entities, require disclosure of existing investments in such entities, and for other purposes.
Introduced March 11, 2025 by John Moolenaar · Last progress March 11, 2025
Prohibits fiduciaries of employee retirement plans covered by ERISA from knowingly buying, lending to, providing goods/services to, transferring assets to, or sharing participant data with entities designated as "foreign adversary" or "sanctioned" under newly added definitions. Requires new annual disclosures listing any plan holdings in those entities, descriptions of related agreements, and directs the Department of Labor to issue implementing regulations within 180 days and make rules effective within one year.