S. 4973Senate117th Congress (2021-2023)In Committee

Retirement Savings Modernization Act

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Updated February 8, 2026 at 5:53 PM UTC

The Retirement Savings Modernization Act amends the Employee Retirement Income Security Act of 1974 to clarify fiduciary responsibilities when dealing with various asset classes in retirement plans. It protects fiduciaries from liability solely for recommending, selecting, or monitoring a covered investment or for plan payments related to such investments. The bill also defines what constitutes a “covered investment,” covering a broad range of assets such as commodities, debt, digital assets, hedge funds, infrastructure, annuities, private equity, real assets, real estate, listed securities, venture capital, and pooled investment vehicles.

Key Provisions

Adds a new provision stating a fiduciary is not liable for a breach of duty solely for recommending, selecting, or monitoring any covered investment, or for causing plan payments or expenses related to that investment.
Defines “covered investment” to include commodities, debt (public and private), digital assets, hedge funds, infrastructure, insured products and annuities, private equity, real assets, real estate or related securities, securities listed on a national exchange, venture capital, and any pooled investment vehicle that invests in these assets.
Clarifies that the terms “exchange,” “security,” and “national securities exchange” retain their meanings under the Securities Exchange Act of 1934.
Specifies that this protection does not exempt fiduciaries from other ERISA requirements.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Health, Education, Labor, and Pensions Committee

September 28, 2022

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SenateIntro Referral

Introduced in Senate

September 28, 2022

SenateIntro Referral

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Health, Education, Labor, and Pensions Committee

September 28, 2022

Bill Text

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Introduced in SenateIssued September 28, 2022

117th CONGRESS

2d Session

S. 4973

IN THE SENATE OF THE UNITED STATES

September 28, 2022

Mr. Toomey (for himself, Mr. Scott of South Carolina, and Ms. Lummis) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

A BILL

To amend the Employee Retirement Income Security Act of 1974 to clarify the fiduciary duties regarding asset classes.

Short title

This Act may be cited as the Retirement Savings Modernization Act.

Fiduciary duties regarding asset classes under ERISA

Section 404(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)) is amended by adding at the end the following:

(3)

(A)

A fiduciary shall not be liable for a breach of fiduciary duties under this section solely for—

(i)

recommending, selecting, or monitoring any covered investment as an investment option for a plan; or

(ii)

causing the plan to make any payment or incur any expense, associated with such covered investment.

(B)

For purposes of subparagraph (A):

(i)

The term covered investment—

(I)

means any direct or indirect investment; and

(II)

includes, but is not limited to, any of the following:

(aa)

Commodities.

(bb)

Debt, including public and private credit.

(cc)

Digital assets.

(dd)

Hedge funds.

(ee)

Infrastructure.

(ff)

Insured products and annuities.

(gg)

Private equity.

(hh)

Real assets.

(ii)

Real estate or real estate-related securities.

(jj)

Securities that are listed on a national securities exchange.

(kk)

Venture capital.

(ll)

An investment in any fund, commingled account, or pooled investment vehicle that invests in any investment, including but not limited to an investment described in items (aa) through (kk).

(ii)

The terms exchange and security have the meanings given the terms in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).

(iii)

The term national securities exchange means an exchange registered as a national securities exchange pursuant to section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f).

(C)

Nothing in this paragraph shall be construed as providing an exemption or safe harbor from the requirements of paragraph (1).