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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 928 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 928
To amend the Employment Retirement Income Security Act of 1974 to
prohibit plan investments in foreign adversary and sanctioned entities,
require disclosure of existing investments in such entities, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 11 (legislative day, March 10), 2025
Mr. Banks introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Employment Retirement Income Security Act of 1974 to
prohibit plan investments in foreign adversary and sanctioned entities,
require disclosure of existing investments in such entities, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Americans' Retirement
Savings Act'' or ``PARSA''.
SEC. 2. PROHIBITION ON INVESTMENT IN CERTAIN ENTITIES.
Section 404(a) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1104(a)) is amended by adding at the end the following:
``(3) Prohibition on Investment in Certain Entities.--
``(A) In general.--It shall be a violation of paragraph (1)
for a fiduciary of a plan to fail to ensure that the plan does
not engage in a transaction that the fiduciary knows, or should
know, will result in the plan--
``(i) acquiring an interest (as defined in section
103(h)) between the plan and a covered entity;
``(ii) lending money or extending credit to a
covered entity;
``(iii) furnishing goods, services, or facilities
to a covered entity; and
``(iv) transferring, directly or indirectly, to or
for use by or for the benefit of a covered entity--
``(I) any assets of the plan; or
``(II) any data with respect to any
participant or beneficiary of the plan.
``(B) Definitions.--
``(i) Covered entity.--For purposes of this
paragraph, the term `covered entity' means a foreign
adversary entity or sanctioned entity, as such terms
are defined in section 103(h).
``(ii) Fiduciary.--For purposes of subparagraph
(A)(iv)(II), the term `fiduciary' includes any person
who exercises direct or indirect discretionary
authority, responsibility, or control with respect to
any participant beneficiary data.
``(C) Continuation of current investments.--In the case of
a plan holding an investment in a covered entity on the date of
enactment of the Protecting Americans' Retirement Savings Act,
such plan may, notwithstanding subparagraph (A), continue to
hold such investment without violating paragraph (1) if the
fiduciary of such plan complies with the requirements of
subparagraphs (I) and (J) of section 103(b)(3).
``(D) Contractually obligated investments.--In the case of
a plan that has entered into a binding agreement prior to the
date of enactment of the Protecting Americans' Retirement
Savings Act obligating such plan to engage in a transaction
described in subparagraph (A), if the fiduciary of such plan
complies with the requirements of subparagraphs (I), (J), and
(K) of section 103(b)(3), such plan may, notwithstanding
subparagraph (A), fulfill the terms of such agreement without
violating paragraph (1) until such agreement--
``(i) expires; or
``(ii) allows for termination.''.
SEC. 3. ADDITIONAL DISCLOSURES FOR EMPLOYEE RETIREMENT FUNDS.
(a) In General.--Section 103(b)(3) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1023(b)(3)) is amended--
(1) in subparagraph (H)(iv), by striking the period at the
end and inserting ``; and''; and
(2) by inserting at the end the following:
``(I) a statement of all assets in the plan that consist,
in whole or in part, of an interest in a sanctioned entity,
including--
``(i) the aggregate value of such assets in the
plan;
``(ii) the identity of each sanctioned entity in
which such plan holds an interest; and
``(iii) information identifying each list under
subsection (h)(5) on which such sanctioned entity is
listed, and the reasons for which an entity may be
placed on such list.
``(J) a statement of all assets in the plan that consist,
in whole or in part, of an interest in a foreign adversary
entity, including--
``(i) the aggregate value of such assets in the
plan;
``(ii) the specific interest, and value thereof,
that such plan holds in each such foreign adversary
entity;
``(iii) the name of any investment vehicle through
which the plan holds such interest;
``(iv) the name of the fiduciary responsible for
such investment; and
``(v) a brief statement of factors considered by
the fiduciary in maintaining such investment.
``(K) a description of any ongoing agreement subject to
section 404(a)(3)(D), including--
``(i) the assets involved in such agreement;
``(ii) the date on which such agreement expires;
``(iii) the date on which such commitment may be
terminated; and
``(iv) such other information as the Secretary may
deem appropriate.''.
(b) Definitions.--Section 103 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1023) is further amended by adding at
the end the following:
``(h) Definitions.--In this section:
``(1) Control.--The term `control' has the meaning given in
section 800.208 of title 31, Code of Federal Regulations (as in
effect on the date of enactment of the Protecting Americans'
Retirement Savings Act).
``(2) Export administration regulations.--The term `Export
Administration Regulations' means the regulations set forth in
subchapter C of chapter VII of title 15, Code of Federal
Regulations, or successor regulations.
``(3) Foreign adversary.--The term `foreign adversary' --
``(A) has the meaning given the term `covered
nation' in section 4872(d) of title 10, United States
Code (as in effect on the date of enactment of this
Act); and
``(B) includes any Special Administrative Region of
any such covered nation.
``(4) Foreign adversary entity.--The term `foreign
adversary entity' means--
``(A) any official governmental body at any level
in a foreign adversary;
``(B) the armed forces of a foreign adversary;
``(C) the leading political party of a foreign
adversary;
``(D) a person organized under the laws of,
headquartered in, or with its principal place of
business in a foreign adversary; or
``(E) a person subject to the direction or control
of an entity listed in subparagraphs (A) through (D).
``(5) Interest.--The term `interest' includes any
interest--
``(A) held directly or indirectly through any chain
of ownership; or
``(B) held as a derivative financial instrument or
other contractual arrangement with respect to a
sanctioned entity or foreign adversary entity,
including any financial instrument or other contract
which seeks to replicate any financial return with
respect to such an entity or an interest in such an
entity.
``(6) Sanctioned entity.--The term `sanctioned entity'
means an entity listed on any of the following lists:
``(A) The Non-SDN Chinese Military-Industrial
Complex Companies List (NS-CMIC List) maintained by the
Office of Foreign Assets Control of the Department of
the Treasury under Executive Order 14032 (86 Fed. Reg.
30145; relating to Addressing the Threat From
Securities Investments That Finance Certain Companies
of the People's Republic of China), or any successor
order.
``(B) The list of Chinese military companies
identified by the Secretary of Defense pursuant to
section 1260H of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021
(Public Law 116-283; 10 U.S.C. 113 note).
``(C) The Entity List maintained by the Department
of Commerce and set forth in Supplement No. 4 to part
744 of the Export Administration Regulations.
``(D) The Denied Persons List maintained by the
Department of Commerce and described in section
764.3(a)(2) of the Export Administration Regulations.
``(E) The Unverified List set forth in Supplement
No. 6 to part 744 of the Export Administration
Regulations.
``(F) The Military End User List set forth in
Supplement No. 7 to part 744 of the Export
Administration Regulations.
``(G) The list of companies whose equipment or
services are maintained by the Federal Communications
Commission under section 2(a) of the Secure and Trusted
Communications Networks Act of 2019 (47 U.S.C.
1601(a)), commonly referred to as the FCC Covered list.
``(H) The Uyghur Forced Labor Prevention Act Entity
List maintained pursuant to section 2(d)(2)(B) of the
Act entitled `An Act to ensure that goods made with
forced labor in the Xinjiang Uyghur Autonomous Region
of the People's Republic of China do not enter the
United States market, and for other purposes', approved
December 23, 2021 (Public Law 117-78).
``(I) The Withhold Release Orders and Findings List
maintained by the Commissioner of U.S. Customs and
Border Protection pursuant to the Act entitled `An Act
to ensure that goods made with forced labor in the
Xinjiang Uyghur Autonomous Region of the People's
Republic of China do not enter the United States
market, and for other purposes', approved December 23,
2021 (Public Law 117-78).''.
(c) Effective Date.--
(1) Regulations required.--Not more than 180 days after the
enactment of this Act, the Secretary shall issue regulations
implementing this Act.
(2) Effective date of regulations.--The regulations issued
under paragraph (1) shall take effect not later than 1 year
after the date of enactment of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
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