Bill > S3083

This bill amends the Employee Retirement Income Security Act (ERISA) to enhance disclosure requirements for retirement plan participants who use brokerage windows, which are investment arrangements that allow participants to choose investments beyond the plan's pre-selected options. Under the proposed legislation, before a participant invests through a brokerage window, they must receive and acknowledge a four-part notice explaining that: 1) the plan's designated investment alternatives are prudently selected by fiduciaries, 2) brokerage window investments are not similarly vetted, 3) these alternative investments may result in diminished returns, higher fees, and increased risk, and 4) a visual illustration showing potential account balances at different investment return rates (4%, 6%, and 8%) projected to age 67. The bill defines a "designated investment alternative" as an investment option specifically chosen by plan fiduciaries, explicitly excluding brokerage windows and self-directed accounts from this category. These new requirements would take effect on January 1, 2026, with the goal of providing retirement investors with more comprehensive information about the risks and potential performance of investments outside their plan's standard options.

Health and Social Services

https://www.congress.gov/bill/119th-congress/senate-bill/3083/all-info