Congress Proposes Ban on Retirement Fund Investments in China and Other Foreign Adversaries
PARSA
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- This bill, called the Protecting Americans' Retirement Savings Act, would stop 401(k)s and other retirement plans from putting new money into companies owned or controlled by 'foreign adversaries.' This includes countries like China, Russia, North Korea, and Iran.
- It also bans retirement funds from investing in 'sanctioned entities.' These are specific companies the U.S. government has flagged for things like supporting foreign militaries, using forced labor, or threatening national security.
- If a retirement plan already has money in these companies, they do not have to sell it immediately. However, the managers must tell the government exactly how much they own, which companies they are invested in, and why they are keeping those investments.
- The bill also protects personal information by banning retirement plans from sharing any data about the people in the plan with these foreign companies or governments.
- The goal is to protect Americans' savings from being used to fund foreign militaries or industries that work against U.S. interests. It also aims to reduce the risk that these investments could lose value if international tensions rise.
- If passed, the government would have six months to write the specific rules, and the ban would fully take effect within one year.
Impact Analysis
Personal Impact
Milestones
Referred to the House Committee on Education and Workforce.
Introduced in House
Related News
3 articles
Jim Banks Introduces Bill to Prevent Pension Plans from Investing in Chinese Companies
Senator Jim Banks (R., Ind.) is introducing the Protecting Americans' Retirement Savings Act to prohibit 401(k)s and other retirement plans from funding companies based in China, Russia, Iran, and other adversarial countries. The bill mandates fiduciaries to disclose all assets in sanctioned entities.
Legislative Change on the Horizon: What Plan Sponsors Need to Know
The Protecting Americans' Retirement Savings Act (S. 928), introduced in March 2025, proposes to amend ERISA by prohibiting retirement-plan investments in companies associated with foreign adversaries and sanctioned countries, reflecting a growing intersection of national security and finance.
ERISA Allows Plan Fiduciaries to Pursue More Than Just Money
Congress is considering the Protecting Americans' Retirement Savings Act (PARSA), which would amend ERISA to block pension plans from making new investments in companies controlled by or based in 'foreign adversary' countries and require disclosure of existing investments.
Related Bills
1 billSource Information
Document Type
Congressional Bill
Official Title
PARSA
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.