| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 2544 |
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| 5 | 5 | | To prohibit the Secretary of Labor from constraining the range or type |
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| 6 | 6 | | of investments that may be offered to participants and beneficiaries |
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| 7 | 7 | | of individual retirement accounts who exercise control over the assets |
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| 8 | 8 | | in such accounts. |
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| 9 | 9 | | IN THE HOUSE OF REPRESENTATIVES |
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| 10 | 10 | | APRIL1, 2025 |
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| 11 | 11 | | Mr. D |
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| 12 | 12 | | ONALDSintroduced the following bill; which was referred to the |
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| 13 | 13 | | Committee on Education and Workforce |
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| 14 | 14 | | A BILL |
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| 15 | 15 | | To prohibit the Secretary of Labor from constraining the |
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| 16 | 16 | | range or type of investments that may be offered to |
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| 17 | 17 | | participants and beneficiaries of individual retirement ac- |
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| 18 | 18 | | counts who exercise control over the assets in such ac- |
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| 19 | 19 | | counts. |
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| 20 | 20 | | Be it enacted by the Senate and House of Representa-1 |
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| 21 | 21 | | tives of the United States of America in Congress assembled, 2 |
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| 22 | 22 | | SECTION 1. SHORT TITLE. 3 |
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| 23 | 23 | | This Act may be cited as the ‘‘Financial Freedom Act 4 |
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| 24 | 24 | | of 2025’’. 5 |
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| 25 | 25 | | VerDate Sep 11 2014 04:42 Apr 04, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2544.IH H2544 |
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| 26 | 26 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
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| 27 | 27 | | •HR 2544 IH |
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| 28 | 28 | | SEC. 2. FIDUCIARY DUTIES WITH RESPECT TO PENSION 1 |
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| 29 | 29 | | PLAN INVESTMENTS. 2 |
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| 30 | 30 | | Section 404(a) of the Employee Retirement Income 3 |
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| 31 | 31 | | Security Act of 1974 (29 U.S.C. 1104(a)) is amended by 4 |
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| 32 | 32 | | adding at the end the following: 5 |
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| 33 | 33 | | ‘‘(3)(A) In the case of a pension plan that pro-6 |
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| 34 | 34 | | vides for individual accounts and permits a partici-7 |
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| 35 | 35 | | pant or beneficiary to exercise control over the as-8 |
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| 36 | 36 | | sets in the participant’s or beneficiary’s account, 9 |
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| 37 | 37 | | nothing in paragraph (1)— 10 |
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| 38 | 38 | | ‘‘(i) requires a fiduciary to select, or pro-11 |
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| 39 | 39 | | hibits a fiduciary from selecting, any particular 12 |
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| 40 | 40 | | type of investment alternative, provided that a 13 |
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| 41 | 41 | | fiduciary provides the participant or beneficiary 14 |
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| 42 | 42 | | an opportunity to choose, from a broad range of 15 |
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| 43 | 43 | | investment alternatives, the manner in which 16 |
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| 44 | 44 | | some or all of the assets of the participant’s or 17 |
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| 45 | 45 | | beneficiary’s account are invested, according to 18 |
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| 46 | 46 | | regulations prescribed by the Secretary; or 19 |
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| 47 | 47 | | ‘‘(ii) requires that any particular type of 20 |
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| 48 | 48 | | investment be either favored or disfavored, 21 |
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| 49 | 49 | | other than on the basis of the investment’s risk- 22 |
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| 50 | 50 | | return characteristics, in the context of the plan 23 |
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| 51 | 51 | | fiduciary’s objective of providing investment al-24 |
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| 52 | 52 | | ternatives suitable for providing benefits for 25 |
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| 53 | 53 | | participants and beneficiaries. 26 |
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| 54 | 54 | | VerDate Sep 11 2014 04:42 Apr 04, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2544.IH H2544 |
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| 55 | 55 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
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| 56 | 56 | | •HR 2544 IH |
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| 57 | 57 | | ‘‘(B) In the event that a fiduciary selects a self- 1 |
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| 58 | 58 | | directed brokerage window as an investment alter-2 |
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| 59 | 59 | | native for a plan described in subparagraph (A)— 3 |
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| 60 | 60 | | ‘‘(i) the Secretary shall not issue any regu-4 |
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| 61 | 61 | | lations or subregulatory guidance constraining 5 |
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| 62 | 62 | | or prohibiting the range or type of investments 6 |
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| 63 | 63 | | that may be offered through such brokerage 7 |
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| 64 | 64 | | window; 8 |
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| 65 | 65 | | ‘‘(ii) subsection (c) shall apply to such self- 9 |
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| 66 | 66 | | directed brokerage window; and 10 |
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| 67 | 67 | | ‘‘(iii) the diversification requirement of 11 |
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| 68 | 68 | | paragraph (1)(C) and the prudence requirement 12 |
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| 69 | 69 | | of paragraph (1)(B) are not violated by the fi-13 |
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| 70 | 70 | | duciary’s selection of a self-directed brokerage 14 |
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| 71 | 71 | | window as an investment alternative or as a re-15 |
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| 72 | 72 | | sult of the exercise of a participant or bene-16 |
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| 73 | 73 | | ficiary’s control over the assets in such self-di-17 |
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| 74 | 74 | | rected brokerage window.’’. 18 |
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| 75 | 75 | | Æ |
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| 76 | 76 | | VerDate Sep 11 2014 04:42 Apr 04, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2544.IH H2544 |
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| 77 | 77 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB |
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