Increase Retirement Earnings Act

Key Points

• Retirement plan managers would have to base investment choices mainly on money-related factors like risk and return, not other goals, unless investments are truly tied on financial grounds and the reason is documented.
• Workplace retirement plans could still offer “values-based” funds as optional choices, but those funds could not be used as the plan’s default option if they rely on non-money factors.
• Plan managers voting company shares with retirement money would face stricter rules: focus on financial impact, consider costs, keep records, and avoid voting to push non-money goals.
• Plan managers choosing plan service providers (like advisors or consultants) would be required to do so without considering race, color, religion, sex, or national origin.
• Workers using a plan’s brokerage window would have to get and acknowledge a clear warning each time they trade, including a simple illustration showing how different return rates could change savings by age 67.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.