HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.congrecreports/crptxafro0001 and id is 1 raw text is: AUTHENTICATED
U.GOVERNMENT
INFORMATION .
118TH CONGRESS REPORT
1st Session HOUSE OF REPRESENTATIVES 118-227
RETIREMENT PROXY PROTECTION ACT
SEPTEMBER 26, 2023.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Ms. Foxx, from the Committee on Education and the Workforce,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 5337]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and the Workforce, to whom was
referred the bill (H.R. 5337) to amend the Employee Retirement In-
come Security Act of 1974 to clarify the application of prudence and
exclusive purpose duties to the exercise of shareholder rights, hav-
ing considered the same, reports favorably thereon with an amend-
ment and recommends that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the Retirement Proxy Protection Act.
SEC. 2. EXERCISE OF SHAREHOLDER RIGHTS.
(a) IN GENERAL.-Section 404 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1104) is amended by adding at the end the following new sub-
section:
(f) EXERCISE OF SHAREHOLDER RIGHTS.-
(1) AUTHORITY TO EXERCISE SHAREHOLDER RIGHTS.-
(A) IN GENERAL.-The fiduciary duty to manage plan assets that are
shares of stock includes the management of shareholder rights appurtenant
to those shares, including the right to vote proxies. When deciding whether
to exercise a shareholder right and in exercising such right, including the
voting of proxies, a fiduciary must act prudently and solely in the interests
of participants and beneficiaries and for the exclusive purpose of providing
benefits to participants and beneficiaries and defraying the reasonable ex-
penses of administering the plan. The fiduciary duty to manage shareholder
39-006](ViewImageLocal?handle=hein.congrecreports/crptxafro0001&div=1&collection=&method=preview&ext=.png&size=3)