US HB2988

Amends ERISA to require retirement plan fiduciaries to base investment decisions solely on pecuniary factors (expected material effect on risk/return), prohibiting the sacrifice of investment returns to promote non-pecuniary goals like ESG considerations

Prohibits investments using non-pecuniary factors from being included as default investment options in participant-directed 401(k)-type plans

Requires fiduciaries to select and monitor service providers without regard to race, color, religion, sex, or national origin

Establishes shareholder rights requirements including that proxy voting must serve economic interests only, with safe harbor policies allowing fiduciaries to skip voting when plan assets in an issuer are below 5% of total plan assets; effective January 1, 2026

Mandates disclosure notices for brokerage window investments warning participants these options are not fiduciary-selected, may have higher fees/risk, and must include projected retirement balance illustrations at 4%, 6%, and 8% returns; effective January 1, 2027