H.R.2067 - Protecting Americans’ Retirement Savings Act; PARSA (119th Congress)
Summary
H.R.2067, the Protecting Americans' Retirement Savings Act (PARSA), aims to amend the Employee Retirement Income Security Act of 1974 (ERISA) to prohibit plan investments in foreign adversary and sanctioned entities. It requires disclosure of existing investments in such entities. The bill seeks to safeguard Americans' retirement savings by preventing investments in entities that pose a national security or economic risk.
Expected Effects
The bill would restrict investment options for retirement plans, potentially limiting returns. It will also increase compliance burdens for plan fiduciaries due to new disclosure requirements. The intended effect is to protect retirement savings from risks associated with foreign adversaries and sanctioned entities.
Potential Benefits
- Enhanced protection of retirement savings from geopolitical risks.
- Increased transparency regarding plan investments in foreign entities.
- Reduced financial support for entities that may be adverse to U.S. interests.
- Alignment of retirement investments with national security objectives.
- Potential for increased domestic investment as funds are redirected.
Most Benefited Areas:
Potential Disadvantages
- Potentially lower investment returns due to restricted investment options.
- Increased compliance costs for retirement plan administrators.
- Possible legal challenges regarding the definition of "foreign adversary entity."
- Risk of retaliatory measures from foreign governments.
- Limited diversification for retirement portfolios.
Constitutional Alignment
The bill appears to align with the Constitution's broad goals of providing for the common defense and promoting the general welfare, as stated in the Preamble. Congress has the power to regulate commerce with foreign nations (Article I, Section 8, Clause 3), which could be interpreted to support restrictions on investments in foreign entities. The bill does not appear to infringe on any specific individual liberties or rights protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).