This bill requires pension plans that offer "brokerage windows"—accounts allowing participants to invest in options beyond the plan's standard choices—to provide clearer warnings before such investments are made. Under current law, workers who use these brokerage windows receive certain protections, but this bill adds mandatory disclosure requirements. Each time a participant invests through a brokerage window, they must first receive and acknowledge a four-part notice explaining that these investments are not reviewed by the plan's fiduciaries, may carry higher fees and risks, and could result in lower retirement savings compared to the plan's standard investment options. The notice must also include a graph showing how different investment returns (4%, 6%, and 8% annually) would affect retirement savings by age 67. The bill affects all workers with access to brokerage windows in their retirement plans and takes effect on January 1, 2026, with no new federal funding required.
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