,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #bihh  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #bd1 #bjbe,mr4 
,all5 introduc$ ! foll[+ bill2 :i* 0    
ref]r$ to ! ,committee on ,education &  
,work=ce  ,a ,,bill  ,to am5d !         
,employee ,retirem5t ,income ,security  
,act ( #aigd to specify requirem5ts     
conc]n+ ! consid]ation ( pecuni>y &     
non-pecuni>y factors1 & = o!r purposes4 
#a4 ,%ort title2 table ( cont5ts  7a7   
,%ort title ,?is ,act may be cit$ z !   
,protect+ ,prud5t ,inve/m5t ( ,retirem5t
 ,sav+s ,act4  7b7 ,table ( cont5ts ,!  
table ( cont5ts = ?is ,act is z foll[s3 
,sec4 #a4 ,%ort title2 table ( cont5ts4 
,division ,a--,increase ,retirem5t      
,e>n+s ,sec4 #ajja4 ,%ort title4 ,sec4  
#ajjb4 ,limitation on consid]ation (    
non-pecuni>y factors by fiduci>ies4     
,division ,b--,no ,discrim9ation 9 ,my  
,b5efits ,sec4 #bjja4 ,%ort title4 ,sec4
 #bjjb4 ,s]vice provid] selection4      
,division ,c--,retirem5t ,proxy         
,protection ,sec4 #cjja4 ,%ort title4   

,sec4 #cjjb4 ,ex]cise ( %>ehold] rights4
 ,division ,d--,provid+ ,complete       
,in=mation to ,retirem5t ,inve/ors ,sec4
 #djja4 ,%ort title4 ,sec4 #djjb4       
,brok]age w9d[ disclosures4  ,a         
,increase ,retirem5t ,e>n+s  #ajja4     
,%ort title ,?is division may be cit$ z 
! ,increase ,retirem5t ,e>n+s ,act4     
#ajjb4 ,limitation on consid]ation (    
non-pecuni>y factors by fiduci>ies  7a7 
,9 g5]al ,section #djd7;a7 ( ! ,employee
 ,retirem5t ,income ,security ,act (    
#aigd 7#bi ,u4,s4,c4 #aajd7;a77 is am5d$
 by add+ at ! end ! foll[+3  7#c7       
,int]e/ bas$ on pecuni>y factors  7,a7  
,9 g5]al ,= purposes ( p>agraph 7#a71 a 
fiduci>y %all be consid]$ to act solely 
9 ! int]e/ ( ! p>ticipants & b5efici>ies
 ( ! plan ) respect to an inve/m5t or   
inve/m5t c\rse ( action only if !       
fiduci>y's action ) respect to su*      
inve/m5t or inve/m5t c\rse ( action is  
bas$ solely on pecuni>y factors 7except 
z provid$ 9 subp>agraph 7,b774 ,!       
fiduci>y may n subord9ate ! int]e/s ( ! 

p>ticipants & b5efici>ies 9 _! retirem5t
 income or f9ancial b5efits "u ! plan to
 o!r objectives & may n sacrifice       
inve/m5t return or take on additional   
inve/m5t risk to promote non-pecuni>y   
b5efits or goals4 ,! weight giv5 to any 
pecuni>y factor by a fiduci>y %all      
reflect a prud5t assessm5t ( ! impact ( 
su* factor on risk & return4  7,b7 ,use 
( non-pecuni>y factors = inve/m5t       
alt]natives ,not)/&+ p>agraph 7,a71 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 may use       
non-pecuni>y factors z ! decid+ factor  
if ! fiduci>y docum5ts--  7i7 :y        
pecuni>y factors 7 n suffici5t to select
 a plan inve/m5t or inve/m5t c\rse (    
action2  7ii7 h[ ! select$ inve/m5t     
comp>es to ! alt]native inve/m5ts )     
reg>d to ! composition ( ! portfolio )  
reg>d to div]sification1 ! liquidity &  
curr5t return ( ! portfolio relative to 
! anticipat$ ca% fl[ requirem5ts ( !    

plan1 & ! project$ return ( ! portfolio 
relative to ! fund+ objectives ( ! plan2
 &  7iii7 h[ ! select$ non-pecuni>y     
factor or factors are consi/5t ) !      
int]e/s ( ! p>ticipants & b5efici>ies 9 
_! retirem5t income or f9ancial b5efits 
"u ! plan4  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 is n
 prohibit$ f consid]+1 select+1 or      
reta9+ an inve/m5t option on ! basis t  
su* inve/m5t option promotes1 seeks1 or 
supports "o or m non-pecuni>y b5efits or
 goals1 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 "u       
subsection 7c77#e7 7or any o!r default  
inve/m5t alt]native7 if its inve/m5t    
objectives or goals or its pr9cipal     

inve/m5t /rategies include1 consid]1 or 
indicate ! use ( "o or m non-pecuni>y   
factors4  7,d7 ,def9itions ,= ! purposes
 ( ?is p>agraph3 7i7 ,! 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  7ii7 
,! 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 ( an individual   
acc\nt plan1 a designat$ inve/m5t       
alt]native "u ! plan4  4  7b7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply to actions tak5 by a fiduci>y
 on or aft] ! date t is #ab mon?s aft] !
 date ( enactm5t ( ?is ,act4  ,b ,no    
,discrim9ation 9 ,my ,b5efits  #bjja4   
,%ort title ,?is division may be cit$ z 

! ,no ,discrim9ation 9 ,my ,b5efits     
,act4  #bjjb4 ,s]vice provid] selection 
,section #djd7;a77#a7 ( ! ,employee     
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #aajd7;a77#a77 is  
am5d$--  7#a7 9 subp>agraph 7,c71 by    
/rik+ &2  7#b7 9 subp>agraph 7,d71 by   
/rik+ ! p]iod at ! end & ins]t+ 2 &2 &  
7#c7 by add+ at ! end ! foll[+ new      
subp>agraph3  7,e7 by select+1 monitor+1
 & reta9+ any fiduci>y1 c\nsel1         
employee1 or s]vice provid] ( ! plan--  
7i7 9 accordance ) subp>agraphs 7,a7 &  
7,b72 &  7ii7 )\t reg>d to race1 color1 
religion1 sex1 or national orig94  4  ,c
 ,retirem5t ,proxy ,protection  #cjja4  
,%ort title ,?is division may be cit$ z 
! ,retirem5t ,proxy ,protection ,act4   
#cjjb4 ,ex]cise ( %>ehold] rights  7a7  
,9 g5]al ,section #djd ( ! ,employee    
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #aajd7 is am5d$ by 
add+ at ! end ! foll[+ new subsection3  
7f7 ,ex]cise ( %>ehold] rights  7#a7    
,au?ority to ex]cise %>ehold] rights    

7,a7 ,9 g5]al ,! fiduci>y duty to manage
 plan assets t are %>es ( /ock includes 
! managem5t ( %>ehold] rights appurt5ant
 to ^? %>es1 includ+ ! "r to vote       
proxies4 ,:5 decid+ :e!r to ex]cise a   
%>ehold] "r & 9 ex]cis+ su* "r1 includ+ 
! vot+ ( proxies1 a fiduci>y mu/ act    
prud5tly & solely 9 ! int]e/s (         
p>ticipants & b5efici>ies & = !         
exclusive purpose ( provid+ b5efits to  
p>ticipants & b5efici>ies & defray+ !   
reasonable exp5ses ( adm9i/]+ ! plan4 ,!
 fiduci>y duty to manage %>ehold] rights
 appurt5ant to %>es ( /ock does n       
require ! vot+ ( e proxy or ! ex]cise ( 
e %>ehold] "r4  7,b7 ,exception ,?is    
subsection %all n apply to vot+1 t5d]1 &
 simil> rights ) respect to qualify+    
employ] securities or securities held 9 
an inve/m5t arrangem5t t is n a         
designat$ inve/m5t alt]native 9 ! ev5t  
su* rights are pass$ ?r\gh pursuant to !
 t]ms ( an individual acc\nt plan to    
p>ticipants & b5efici>ies ) acc\nts     
hold+ su* securities4  7#b7 ,requirem5ts

 = ex]cise ( %>ehold] rights ,a         
fiduci>y1 :5 decid+ :e!r to ex]cise a   
%>ehold] "r & :5 ex]cis+ a %>ehold] "r--
 7,a7 %all--  7i7 act solely 9          
accordance ) ! economic int]e/ ( ! plan 
& its p>ticipants & b5efici>ies2  7ii7  
consid] any co/s involv$2  7iii7        
evaluate mat]ial facts t =m ! basis =   
any p>ticul> proxy vote or ex]cise (    
%>ehold] rights2 &  7iv7 ma9ta9 a record
 ( any proxy vote1 proxy vot+ activity1 
or o!r ex]cise ( a %>ehold] "r1 includ+ 
any attempt to influ5ce managem5t2 &    
7,b7 %all n subord9ate ! int]e/s (      
p>ticipants & b5efici>ies 9 _! retirem5t
 income or f9ancial b5efits "u ! plan to
 any non-pecuni>y objective1 or promote 
non-pecuni>y b5efits or goals unrelat$  
to ^? f9ancial int]e/s ( ! plan's       
p>ticipants & b5efici>ies4  7#c7        
,monitor+ ,a fiduci>y %all ex]cise      
prud5ce & dilig5ce 9 ! selection &      
monitor+ ( a p]son1 if any1 select$ to  
advise or o!rwise assi/ ) ! ex]cise (   
%>ehold] rights1 includ+ by provid+     

rese>* & analysis1 recomm5dations on    
ex]cise ( proxy vot+ or o!r %>ehold]    
rights1 adm9i/rative s]vices ) respect  
to vot+ proxies1 & recordkeep+ & report+
 s]vices4  7#d7 ,inve/m5t manag]s &     
proxy advisory firms ,:]e ! au?ority to 
vote proxies or ex]cise o!r %>ehold]    
rights has be5 delegat$ to an inve/m5t  
manag] pursuant to section #djc7;a71 or 
a proxy vot+ advisory firm or o!r p]son 
:o p]=ms advisory s]vices z to ! vot+ ( 
proxies or ! ex]cise ( o!r %>ehold]     
rights1 a responsible plan fiduci>y %all
 prud5tly monitor ! proxy vot+          
activities ( su* inve/m5t manag] or     
advisory firm & det]m9e :e!r su*        
activities are 9 compliance ) p>agraphs 
7#a7 & 7#b74  7#e7 ,vot+ policies  7,a7 
,9 g5]al ,9 decid+ :e!r to vote a proxy 
pursuant to ?is subsection1 ! plan      
fiduci>y may adopt a proxy vot+ policy1 
includ+ a safe h>bor proxy vot+ policy  
describ$ 9 subp>agraph 7,b71 provid+ t !
 au?ority to vote a proxy %all be       
ex]cis$ pursuant to specific p>amet]s   

design$ to s]ve ! economic int]e/ ( !   
plan4  7,b7 ,safe h>bor vot+ policy ,)  
respect to a decision n to vote a proxy1
 a fiduci>y %all satisfy ! fiduci>y     
responsibilities "u ?is subsection if   
su* fiduci>y adopts & is foll[+ a safe  
h>bor proxy vot+ policy t-- 7i7 limits  
vot+ res\rces to p>ticul> types (       
proposals t ! fiduci>y has prud5tly     
det]m9$ are sub/antially relat$ to !    
bus9ess activities ( ! issu] or are     
expect$ to h a mat]ial effect on ! value
 ( ! plan inve/m5t2 or  7ii7 e/abli%es t
 ! fiduci>y w refra9 f vot+ on proposals
 or p>ticul> types ( proposals :5 !     
assets ( a plan inve/$ 9 ! issu]        
relative to ! total assets ( su* plan   
are bel[ #e p]c5t 7or1 9 ! ev5t su*     
assets are "u managem5t1 :5 ! assets "u 
managem5t inve/$ 9 ! issu] are bel[ #e  
p]c5t ( ! total assets "u managem5t74   
7,c7 ,exception ,no proxy vot+ policy   
adopt$ pursuant to ?is p>agraph %all    
preclude a fiduci>y f submitt+ a proxy  
vote :5 ! fiduci>y det]m9es t ! matt]   

be+ vot$ on is expect$ to h a mat]ial   
economic effect on ! inve/m5t p]=mance (
 a plan's portfolio 7or ! inve/m5t      
p]=mance ( assets "u managem5t 9 ! case 
( an inve/m5t manag]72 provid$1 h[ev]1 t
 9 all cases compliance ) a safe h>bor  
vot+ policy %all be presum$ to satisfy  
fiduci>y responsibilities ) respect to  
decisions n to vote4  7#f7 ,review ,a   
fiduci>y %all p]iodically review any    
policy adopt$ "u ?is subsection4  4  7b7
 ,effective date ,! am5dm5ts made by    
subsection 7a7 %all apply to an ex]cise 
( %>ehold] rights occurr+ on or aft]    
,janu>y #a1 #bjbf4  ,d ,provid+         
,complete ,in=mation to ,retirem5t      
,inve/ors  #djja4 ,%ort title ,?is      
division may be cit$ z ! ,provid+       
,complete ,in=mation to ,retirem5t      
,inve/ors ,act4  #djjb4 ,brok]age w9d[  
disclosures  7a7 ,9 g5]al ,section      
#djd7;c7 ( ! ,employee ,retirem5t       
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #aajd7;c77 is am5d$ by add+ at
 ! end ! foll[+ new p>agraph3  7#g7     

,notice requirem5ts = brok]age w9d[s    
7,a7 ,9 g5]al ,9 ! case ( a p5sion plan 
:i* provides = individual acc\nts & :i* 
provides a p>ticipant or b5efici>y !    
opportunity to *oose f designat$        
inve/m5t alt]natives1 a p>ticipant or   
b5efici>y %all n be treat$ z ex]cis+    
control ov] assets 9 ! acc\nt ( !       
p>ticipant or b5efici>y unless1 )       
respect to any inve/m5t arrangem5t t is 
n a designat$ inve/m5t alt]native1 ea*  
"t be=e su* a p>ticipant or b5efici>y   
directs an inve/m5t into1 out (1 or )9  
su* inve/m5t arrangem5t1 su* p>ticipant 
is notifi$ (1 & ackn[l$ges1 ea* elem5t (
 ! notice describ$ "u p>agraph 7,b74    
7,b7 ,notice ,! notice describ$ "u ?is  
p>agraph is a f\r "p in=mation t is     
sub/antially simil> to ! foll[+         
in=mation3  #a4 ,y\r retirem5t plan (f]s
 designat$ inve/m5t alt]natives prud5tly
 select$ & monitor$ by fiduci>ies = !   
purpose ( enabl+ y to con/ruct an       
appropriate retirem5t sav+s portfolio4  
,9 select+ & monitor+ designat$ inve/m5t

 alt]natives1 y\r plan's fiduci>y       
consid]s ! risk ( loss & ! opportunity =
 ga9 7or o!r return7 comp>$ ) reasonably
 available inve/m5t alt]natives4 #b4 ,! 
inve/m5ts available ?r\gh ?is inve/m5t  
arrangem5t are n designat$ inve/m5t     
alt]natives1 & h n be5 prud5tly select$ 
& are n monitor$ by a plan fiduci>y4 #c4
 ,dep5d+ on ! inve/m5ts y select ?r\gh  
?is inve/m5t arrangem5t1 y may exp]i5ce 
dim9i%$ returns1 high] fees1 & high]    
risk ?an if y select f ! plan's         
designat$ inve/m5t alt]natives4 #d4 ,!  
foll[+ is a hypo!tical illu/ration ( !  
impact ( return at #d p]c5t1 #f p]c5t1 &
 #h p]c5t on y\r acc\nt balance project$
 to age #fg4  7,c7 ,illu/ration ,!      
notice describ$ "u p>agraph 7,b7 %all   
also include a graph display+ ! project$
 retirem5t balances ( su* p>ticipant or 
b5efici>y at age #fg if ! acc\nt ( su*  
individual 7 to a*ieve an annual return 
equal to ea* ( ! foll[+3 7i7 #d p]c5t4  
7ii7 #f p]c5t4  7iii7 #h p]c5t4  4  7b7 
,designat$ inve/m5t alt]native def9$    

,section #c ( su* ,act 7#bi ,u4,s4,c4   
#ajjb7 is am5d$ by add+ at ! end !      
foll[+ new p>agraph3  7#df7 ,designat$  
inve/m5t alt]native  7,a7 ,9 g5]al ,!   
t]m designat$ inve/m5t alt]native means 
any inve/m5t alt]native designat$ by a  
responsible fiduci>y ( an individual    
acc\nt plan describ$ 9 subsection       
#djd7;c7 into :i* p>ticipants &         
b5efici>ies may direct ! inve/m5t (     
assets held 91 or contribut$ to1 _!     
individual acc\nts4  7,b7 ,exception ,! 
t]m designat$ inve/m5t alt]native does n
 include brok]age w9d[s1 self-direct$   
brok]age acc\nts1 or simil> plan        
arrangem5ts t enable p>ticipants &      
b5efici>ies to select inve/m5ts beyond  
^? designat$ by a responsible plan      
fiduci>y4  4  7c7 ,effective date ,!    
am5dm5t made by subsection 7a7 %all take
 effect on ,janu>y #a1 #bjbg4