HR-4008 : Still Just a Bill

H.R. 4008, also known as the "Protecting Americans' Retirement Savings Act" or "PARSA," seeks to amend the Employee Retirement Income Security Act of 1974 (ERISA) by:

• Prohibiting employee retirement plans from investing in foreign adversary and sanctioned entities.
• Requiring disclosure of existing investments in such entities.

Key provisions of the bill include:

• Defining "foreign adversary" and "sanctioned entity" based on existing U.S. law and lists maintained by government agencies.
• Stipulating that a plan fiduciary cannot act solely in the interest of plan participants and beneficiaries if the plan invests in sanctioned or foreign adversary entities.
• Allowing for the continuation of current investments in such entities if the plan fiduciary complies with specific disclosure requirements.
• Permitting plans to fulfill binding agreements entered into before the enactment of the bill, subject to certain conditions and disclosures.
• Mandating a separate statement of plan assets that consist of an interest in a sanctioned entity, including the aggregate value of such assets and the identity of the sanctioned entity.
• Requiring a separate statement of plan assets that consist of an interest in a foreign adversary entity, including the aggregate value of such assets, the specific interest held, and the name of any investment vehicle.
• Directing the Secretary to issue regulations implementing the Act within 180 days of enactment, with the regulations taking effect no later than 1 year after enactment.