H.R. 2067

119th CONGRESS 1st Session

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.

IN THE HOUSE OF REPRESENTATIVES · March 11, 2025 · Sponsor: Mr. Moolenaar · Committee: Committee on Education and Workforce

Table of contents

• H.R. 2067
  • SEC. 1. Short title
  • SEC. 2. Prohibition on investment in certain entities
  • SEC. 3. Additional disclosures for employee retirement funds

SEC. 1. Short title

• This Act may be cited as the or .

SEC. 2. Prohibition on investment in certain entities

• Section 404(a) of the Employee Retirement Income Security Act of 1974 () is amended by adding at the end the following: 29 U.S.C. 1104(a)
  • (3) Prohibition on investment in certain entities
    • (A) In general
      • It shall be a violation of paragraph (1) for a fiduciary of a plan to fail to ensure that the plan does not engage in a transaction that the fiduciary knows, or should know, will result in the plan—
        • (i) acquiring an interest (as defined in section 103(h)) between the plan and a covered entity;
        • (ii) lending money or extending credit to a covered entity;
        • (iii) furnishing goods, services, or facilities to a covered entity; and
        • (iv) transferring, directly or indirectly, to or for use by or for the benefit of a covered entity—
        • any assets of the plan; or
        • any data with respect to any participant or beneficiary of the plan.
    • (B) Definitions
      • (i) For purposes of this paragraph, the term covered entity means a foreign adversary entity or sanctioned entity, as such terms are defined in section 103(h).
      • (ii) For purposes of subparagraph (A)(iv)(II), the term includes any person who exercises direct or indirect discretionary authority, responsibility, or control with respect to any participant beneficiary data. fiduciary
    • (C) Continuation of current investments
      • In the case of a plan holding an investment in a covered entity on the date of enactment of the , such plan may, notwithstanding subparagraph (A), continue to hold such investment without violating paragraph (1) if the fiduciary of such plan complies with the requirements of subparagraphs (I) and (J) of section 103(b)(3).
    • (D) Contractually obligated investments
      • In the case of a plan that has entered into a binding agreement prior to the date of enactment of the obligating such plan to engage in a transaction described in subparagraph (A), if the fiduciary of such plan complies with the requirements of subparagraphs (I), (J), and (K) of section 103(b)(3), such plan may, notwithstanding subparagraph (A), fulfill the terms of such agreement without violating paragraph (1) until such agreement—
        • (i) expires; or
        • (ii) allows for termination.

SEC. 3. Additional disclosures for employee retirement funds

• (a) In general
  • Section 103(b)(3) of the Employee Retirement Income Security Act of 1974 () is amended— 29 U.S.C. 1023(b)(3)
    • in subparagraph (H)(iv), by striking the period at the end and inserting ; and; and
      • a statement of all assets in the plan that consist, in whole or in part, of an interest in a sanctioned entity, including—
        • (i) the aggregate value of such assets in the plan;
        • (ii) the identity of each sanctioned entity in which such plan holds an interest; and
        • (iii) information identifying each list under subsection (h)(5) on which such sanctioned entity is listed, and the reasons for which an entity may be placed on such list.
      • a statement of all assets in the plan that consist, in whole or in part, of an interest in a foreign adversary entity, including—
        • (i) the aggregate value of such assets in the plan;
        • (ii) the specific interest, and value thereof, that such plan holds in each such foreign adversary entity;
        • (iii) the name of any investment vehicle through which the plan holds such interest;
        • (iv) the name of the fiduciary responsible for such investment; and
        • (v) a brief statement of factors considered by the fiduciary in maintaining such investment.
      • a description of any ongoing agreement subject to section 404(a)(3)(D), including—
        • (i) the assets involved in such agreement;
        • (ii) the date on which such agreement expires;
        • (iii) the date on which such commitment may be terminated; and
        • (iv) such other information as the Secretary may deem appropriate.
    • by inserting at the end the following:
• (b) Definitions
  • Section 103 of the Employee Retirement Income Security Act of 1974 () is further amended by adding at the end the following: 29 U.S.C. 1023
    • (h) Definitions
      • In this section:
        • The term control has the meaning given in section 800.208 of title 31, Code of Federal Regulations (as in effect on the date of enactment of the ).
        • The term Export Administration Regulations means the regulations set forth in subchapter C of chapter VII of title 15, Code of Federal Regulations, or successor regulations.
        • The term — foreign adversary
        • The term foreign adversary entity means—
        • The term includes any interest— interest
        • The term sanctioned entity means an entity listed on any of the following lists:
• (c) Effective date
  • (1) Regulations required
    • Not more than 180 days after the enactment of this Act, the Secretary shall issue regulations implementing this Act.
  • (2) Effective date of regulations
    • The regulations issued under paragraph (1) shall take effect not later than 1 year after the date of enactment of this Act.