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

For purposes of paragraph (1), a fiduciary of a plan may not be considered to act solely in the interest of the participants and beneficiaries of the plan if such fiduciary does not ensure that such 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 sanctioned entity or foreign adversary entity (as each such term is defined in section 103(h));(ii)lending money or extending credit to such an entity; (iii)furnishing goods, services, or facilities to such an entity; or(iv)transferring, directly or indirectly, to or for use by or for the benefit of such an entity—(I)any assets of the plan; or(II)any data with respect to any participant or beneficiary of the plan.

For the purposes of subclause (II), the term fiduciary includes any person who exercises direct or indirect discretionary authority, responsibility, or control with respect to any participant beneficiary data.

(B)

Continuation of current investments

In the case of a plan holding an investment in a sanctioned entity or foreign adversary entity on the date of enactment of the Protecting Americans’ Retirement Savings Act, such plan may continue to hold such investment if the fiduciary of such plan complies with the requirements of subparagraphs (I) and (J) of section 103(b)(3).(C)

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 under 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 fulfill the terms of such agreement until such agreement—(i)expires; or(ii)allows for termination.

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 separate 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 separate 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)(C), 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 new subsection:

(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 this 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 such sanctioned entity, including any financial instrument or other contract which seeks to replicate any financial return with respect to a sanctioned entity or interest in such sanctioned 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), 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 by the Department of Homeland Security pursuant to 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 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.