Summary: H.R.5877 — 113th Congress (2013-2014)All Information (Except Text)

There is one summary for H.R.5877. Bill summaries are authored by CRS.

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Introduced in House (12/11/2014)

American Pension Investments Modernization Act of 2014 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to require the fiduciary of an employee benefit plan to establish policies for appointment of an investment manager or managers to manage any plan assets or business enterprise or enterprises for brokerage and investment banking services.

Requires the fiduciary, under these policies, to consider:

  • the concentration level of the plan's exposure to firm-specific risks, including operational, compliance, and fraud risks;
  • the inclusion, to the greatest extent feasible, of minority business enterprises for brokerage and investment banking services (including enterprises owned or controlled by specified percentages of African-Americans, Hispanic-Americans, Asian Pacific Americans, Subcontinent Asian Americans, Native Americans, women, or veterans); and
  • the utilization of diverse asset managers, taking into consideration the investment opportunities they offer in sectors, strategies, geographies, and demographics not meaningfully available to the plans.

Defines "diverse asset manager" as a minority business enterprise that manages an investment portfolio of between $100 million and $25 billion.

Directs the Secretary of Labor to issue related guidance and requires the Federal Retirement Thrift Investment Board (FRTIB) under the Federal Employees Retirement System (FERS) to take this guidance into account.

Directs the FRTIB to give current and former federal employees and Members of Congress in FERS the option to participate in actively managed funds within the employee's or Member's Thrift Savings Fund account (but no more than 20% of a current or former employee's or Member's funds).

Prohibits the FRTIB from subjecting more than 20% of the total assets under management of the Thrift Savings Fund to active management.