S.928 - Protecting Americans’ Retirement Savings Act; PARSA (119th Congress)
Summary
S.928, 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 was introduced in the Senate and referred to the Committee on Health, Education, Labor, and Pensions.
Expected Effects
The bill would restrict retirement plans from investing in entities deemed to be foreign adversaries or sanctioned. It will also mandate increased transparency through additional disclosures regarding existing investments in these entities. This could lead to a shift in investment strategies for retirement plans.
Potential Benefits
- Enhanced protection of retirement savings from risks associated with foreign adversaries and sanctioned entities.
- Increased transparency regarding retirement plan investments, allowing participants to make more informed decisions.
- Alignment of retirement investments with national security interests.
- Potential reduction in financial support for entities that may pose a threat to the United States.
- Encourages investment in domestic markets.
Most Benefited Areas:
Potential Disadvantages
- Potential limitation of investment options for retirement plans, possibly impacting returns.
- Increased compliance costs for plan fiduciaries due to additional disclosure requirements.
- Possible difficulty in defining and identifying 'foreign adversary' and 'sanctioned' entities, leading to uncertainty.
- Risk of unintended consequences, such as hindering investment in emerging markets.
- Potential for retaliatory actions from foreign entities.
Constitutional Alignment
The bill's alignment with the Constitution is primarily related to Congress's power to regulate commerce and provide for the common defense. Article I, Section 8 grants Congress the power to regulate commerce with foreign nations and to make laws necessary and proper for carrying out its enumerated powers. The bill's focus on national security and protecting American assets could be argued as falling under the umbrella of providing for the common defense.
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).