Section 1. Short title
This Act may be cited as the Safeguarding Investment Options for Retirement Act.
(a) In general
Section 401(a) of the Internal Revenue Code of 1986 is amended by inserting after paragraph (39) the following new paragraph:
(40) Prohibition on consideration of factors other than financial risk and return factors
For purposes of this subsection, the term exclusive benefit shall include a requirement that the corpus and income of the trust are invested exclusively on the basis of financial risk and return factors.
(b) Application to annuity contracts
Section 403(b)(1) of such Code is amended by striking and at the end of subparagraph (D), by adding and at the end of subparagraph (E), and by inserting after subparagraph (E) the following new subparagraph:
(F) the corpus and income invested pursuant to such contract are invested exclusively on the basis of financial risk and return factors,
(c) Application to governmental plans
Section 457(e) of such Code is amended by adding at the end the following new paragraph:
(19) Prohibition on governmental plans considering factors other than financial risk and return factors
In the case of an employer described in subsection (e)(1)(A), a plan shall not be treated as meeting the requirements of this section unless the corpus and income of the plan are invested exclusively on the basis of financial risk and return factors.
(d) Administration by Treasury
Sections 401(a)(40), 403(b)(1)(F), and 457(e)(19) of the Internal Revenue Code of 1986 (as amended by this section) shall be administered exclusively by the Secretary of the Treasury or the Secretary’s delegate.
(e) Effective date
The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act.