119-s1222

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1222 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1222

To prohibit the Secretary of Labor from constraining the range or type 
of investments that may be offered to participants and beneficiaries of 
individual retirement accounts who exercise control over the assets in 
 such accounts.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 April 1 (legislative day, March 31), 2025

Mr. Tuberville (for himself, Ms. Lummis, Mr. Justice, and Mr. Scott of 
 Florida) introduced the following bill; which was read twice and 
 referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

 A BILL

To prohibit the Secretary of Labor from constraining the range or type 
of investments that may be offered to participants and beneficiaries of 
individual retirement accounts who exercise control over the assets in 
 such accounts.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Financial Freedom Act of 2025''.

SEC. 2. FIDUCIARY DUTIES WITH RESPECT TO PENSION PLAN INVESTMENTS.

 

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)
        (A) In the case of a pension plan that provides for individual 
accounts and permits a participant or beneficiary to exercise control 
over the assets in the participant's or beneficiary's account, nothing 
in paragraph

    (1) --
 ``
            (i) requires a fiduciary to select, or prohibits a 
 fiduciary from selecting, any particular type of investment 
 alternative, provided that a fiduciary provides the participant 
 or beneficiary an opportunity to choose, from a broad range of 
 investment alternatives, the manner in which some or all of the 
 assets of the participant's or beneficiary's account are 
 invested, according to regulations prescribed by the Secretary; 
 or
 ``
            (ii) requires that any particular type of investment be 
 either favored or disfavored, other than on the basis of the 
 investment's risk-return characteristics, in the context of the 
 plan fiduciary's objective of providing investment alternatives 
 suitable for providing benefits for participants and 
 beneficiaries.
 ``
        (B) In the event that a fiduciary selects a self-directed 
brokerage window as an investment alternative for a plan described in 
subparagraph
        (A) --
 ``
            (i) the Secretary shall not issue any regulations or 
 subregulatory guidance constraining or prohibiting the range or 
 type of investments that may be offered through such brokerage 
 window;
 ``
            (ii) subsection
            (c) shall apply to such self-directed 
 brokerage window; and
 ``
            (iii) the diversification requirement of paragraph

    (1)
            (C) and the prudence requirement of paragraph

    (1)
        (B) are not 
 violated by the fiduciary's selection of a self-directed 
 brokerage window as an investment alternative or as a result of 
 the exercise of a participant or beneficiary's control over the 
 assets in such self-directed brokerage window.''.
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