Sec. 404. Sense of congress regarding certain ERISA plan investments
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/bill/116/s/1/es/section-404A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
It is the sense of Congress that— a fiduciary of an employee benefit plan, as defined in section 3(3) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1002(3) ), may divest plan assets from, or avoid investing plan assets in, any person the fiduciary determines knowingly engages in any activity described in section 2(b), if— the fiduciary makes that determination using credible information that is available to the public; and the fiduciary prudently determines that the result of that divestment or avoidance of investment would not be expected to provide the employee benefit plan with— a lower rate of return than alternative investments with commensurate degrees of risk; or a higher degree of risk than alternative investments with commensurate rates of return; and by divesting assets or avoiding the investment of assets as described in paragraph (1), the fiduciary is not breaching the responsibilities, obligations, or duties imposed upon the fiduciary by subparagraph
(A)or
(B)of section 404(a)(1) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1104(a)(1) ).
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