Retirement Proxy Protection Act

HR 5337, the Retirement Proxy Protection Act, amends ERISA to clarify how retirement plan fiduciaries (like 401(k) plan managers) must handle voting on company shareholder proxies. It requires fiduciaries to act solely in participants' financial interest when deciding whether to vote, considering economic impact and costs, while allowing them to skip voting on proposals affecting less than 5% of plan assets in a company. The bill establishes "safe harbor" rules that protect fiduciaries from liability if they follow policies limiting voting to proposals with material economic impact or asset thresholds. It also mandates recordkeeping of voting decisions and monitoring of third-party advisors managing these votes, effective January 1, 2024.