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Retirement Savings Protection: Prioritizing Financial Returns Over Non-Financial Goals.

This law introduces new rules for investment advisors and retirement fund managers, requiring them to prioritize financial factors (risk and return) when making investment decisions. The goal is to ensure that citizens' retirement savings are not subordinated to non-financial objectives, such as environmental or social goals, unless the customer explicitly agrees in writing. These changes directly affect the management of retirement plans like 401k.
Key points
Managers of retirement funds (e.g., 401k plans) must base investment decisions solely on financial factors to maximize returns for beneficiaries.
Investment advisors must prioritize the customer's best financial interest; considering non-financial goals requires written consent and disclosure of associated costs and expected returns.
The act mandates studies on state pension underfunding and the transparency of environmental disclosures in the municipal bond market.
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Expired
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Additional Information
Print number: 118_S_2282
Sponsor: Sen. Cotton, Tom [R-AR]
Process start date: 2023-07-12
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Ensuring Sound Guidance Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_2282.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-07-12.

What are the main provisions?

Key points include:

  • Managers of retirement funds (e.g., 401k plans) must base investment decisions solely on financial factors to maximize returns for beneficiaries.
  • Investment advisors must prioritize the customer's best financial interest; considering non-financial goals requires written consent and disclosure of associated costs and expected returns.
  • The act mandates studies on state pension underfunding and the transparency of environmental disclosures in the municipal bond market.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Cotton, Tom [R-AR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

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