,,ii  #aah? ,,congress  #b;d ,session   
,s4 #eagd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #be1         
#bjbd,mr4 ,cassidy introduc$ ! foll[+   
bill2 :i* 0 read twice & ref]r$ to !    
,committee on ,heal?1 ,education1       
,labor1 & ,p5sions  ,a ,,bill  ,to am5d 
! ,employee ,retirem5t ,income ,security
 ,act ( #aigd to cl>ify ! crit]ia by :i*
 fiduci>y responsibility is ex]cis$ 9   
protect+ %>ehold] rights4  #a4 ,%ort    
title ,?is ,act may be cit$ z ! ,re/or+ 
,integrity 9 ,fiduci>y ,duty ,act4  #b4 
,ex]cise ( fiduci>y duty  7a7 ,9 g5]al  
,section #djd7;a7 ( ! ,employee         
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #aajd7;a771 is     
am5d$ by add+ at ! end ! foll[+3  7#c7  
,inve/m5ts bas$ on pecuni>y factors     
7,a7 ,9 g5]al ,= ! purposes ( p>agraph  
7#a71 a fiduci>y-- 7i7 may evaluate an  
inve/m5t or inve/m5t c\rse ( action bas$
 only on pecuni>y factors1 except z     
provid$ 9 subp>agraph 7,b72  7ii7 may n 
subord9ate ! int]e/s ( ! p>ticipants &  

b5efici>ies 9 _! retirem5t income or    
f9ancial b5efits "u ! plan to o!r       
objectives2  7iii7 may n sacrifice      
inve/m5t return or take on additional   
inve/m5t risk to promote nonpecuni>y    
b5efits or goals2 &  7iv7 %all weight   
ea* pecuni>y factor 9 a mann] t         
appropriately reflects a prud5t         
assessm5t ( ! impact ( ! factor on risk 
& return4  7,b7 ,use ( nonpecuni>y      
factors = inve/m5t alt]natives ,not)/&+ 
subp>agraph 7,a71 :5 *oos+ betwe5 or    
among inve/m5t alt]natives1 if a        
fiduci>y is unable to di/+ui% betwe5 or 
among inve/m5t alt]natives or inve/m5t  
c\rses ( action on ! basis ( pecuni>y   
factors alone1 ! fiduci>y %all use !    
capita aut navia /&>d z ! decid+ factor 
9 ! inve/m5t decision1 provid$ t-- 7i7 !
 fiduci>y docum5ts detail-- 7,i7 :y     
pecuni>y factors 7 n suffici5t to select
 ! inve/m5t or inve/m5t c\rse ( action2 
7,,ii7 h[ ! select$ inve/m5t comp>es to 
! alt]native inve/m5ts ) reg>d to !     
composition ( ! portfolio ) reg>d to    

div]sification1 ! liquidity1 curr5t     
return ( ! portfolio relative to !      
anticipat$ ca% fl[ requirem5ts ( ! plan1
 & ! project$ return ( ! portfolio      
relative to ! fund+ objectives ( ! plan2
 &  7,,iii7 h[ ! select$ inve/m5t is    
consi/5t ) ! int]e/s ( ! p>ticipants &  
b5efici>ies 9 _! retirem5t income or    
f9ancial b5efits "u ! plan2 &  7ii7 !   
fiduci>y demon/rates t x did n exp5d any
 res\rces dur+ ! inve/m5t c\rse ( action
 on nonpecuni>y factors t place weight  
betwe5 or among inve/m5t alt]natives = !
 purpose ( ! inve/m5t decision4  7,c7   
,inve/m5t alt]natives =                 
p>ticipant-direct$ individual acc\nt    
plans ,9 select+ or reta9+ inve/m5t     
options = a p5sion plan describ$ 9      
subsection 7c77#a77;,a71 a fiduci>y may 
consid]1 select1 or reta9 an inve/m5t   
option on ! basis t su* inve/m5t option 
promotes1 seeks1 or supports #a or m    
nonpecuni>y b5efits or goals1 only if-- 
7i7 ! fiduci>y satisfies ! requirem5ts (
 p>agraph 7#a7 & subp>agraphs 7,a7 &    

7,b7 ( ?is p>agraph 9 select+ or reta9+ 
any su* inve/m5t option2 &  7ii7 su*    
inve/m5t option is n add$ or reta9$ z1  
or includ$ z a compon5t (1 a default    
inve/m5t describ$ 9 subsection 7c77#e7  
7or any o!r default inve/m5t            
alt]native74  7,d7 ,def9itions ,= !     
purposes ( ?is p>agraph3 7i7 ,capita aut
 navia ,! t]m capita aut navia means a  
/&>d by :i* a fiduci>y *ooses at r&om   
betwe5 or among inve/m5t alt]natives :]e
 pecuni>y factors are equal & does n    
give add$ weight to #a inve/m5t or      
ano!r1 provid$ t ! inve/m5t alt]natives 
h id5tical risk & return attributes &   
*oos+ among ! inve/m5t alt]natives w\ld 
h comp>atively negligible impact1 n     
consid]+ liquidity con/ra9ts or         
transaction co/s4  7ii7 ,inve/m5t c\rse 
( action ,! t]m inve/m5t c\rse ( action 
means any s]ies or program ( inve/m5ts  
or actions relat$ to a fiduci>y's       
p]=mance ( ! fiduci>y's inve/m5t duties1
 & includes ! selection ( an inve/m5t   
fund z a plan inve/m5t1 or 9 ! case ( a 

plan describ$ 9 subsection 7c77#a77;,a71
 a designat$ inve/m5t alt]native "u !   
plan4  7iii7 ,mat]ial ,! t]m mat]ial1 :5
 us$ to qualify a f9ancial risk or      
f9ancial return-- 7,i7 means a f9ancial 
risk or f9ancial return 9 :i* !re is a  
sub/antial likelihood t a reasonable    
inve/or w\ld atta* importance :5-- 7aa7 
evaluat+ ! pot5tial f9ancial risks or   
returns ( an exi/+ or prospective       
inve/m5t2 or  7bb7 ex]cis+1 or decl9+ to
 ex]cise1 any rights ) respect to       
securities2 &  7,,ii7 does n include    
fur!r+ nonpecuni>y1 environm5tal1       
social1 political1 ideological1 or o!r  
goals or objectives4  7iv7 ,pecuni>y    
factor ,! t]m pecuni>y factor means a   
factor t a fiduci>y prud5tly det]m9es is
 expect$ to h a mat]ial effect on ! risk
 or return ( an inve/m5t bas$ on        
appropriate inve/m5t horizons consi/5t )
 ! plan's inve/m5t objectives & ! fund+ 
policy e/abli%$ pursuant to section     
#djb7;b77#a74  4  7b7 ,effective date ,!
 am5dm5ts made by ?is section %all apply

 to actions tak5 by a fiduci>y on or    
aft] ! date t is #a ye> aft] ! date (   
enactm5t ( ?is ,act4