Retiree Protection Act of 1985

Retiree Protection Act of 1985 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (IRC) to revise provisions relating to employee benefit plan fiduciary duties.

Gives priority to maximization of investment returns in the description of employee benefit plan fiduciary duties.

Requires employee benefit plan fiduciaries to avoid the selection, for the purpose, in whole or in part, of achieving or furthering any political, ideological, or social goal, of any investment or class of investments otherwise suitable for the plan's portfolio over any other suitable investment or class of investments if such selection would reasonably be expected to yield a financial return less than that which would reasonably be expected from the other investment or class of investments.

Revises provisions relating to the granting of exemptions from prohibited transactions.

Provides that such an exemption shall not by itself bar, or constitute a defense to, any civil or criminal action brought against any fiduciary under any other law of the United States.

Prohibits the Secretary of Labor from granting any such exemption without an explicit determination, on the basis of clear and convincing evidence on the record as a whole, that such an exemption meets specified conditions. Specifies in such conditions that the rights of plan participants and beneficiaries which must be otherwise protected under such conditions are their rights under ERISA and IRC and any other law of the United States. Adds to such conditions that an exemption must be: (1) for the exclusive purpose of providing benefits to plan participants and beneficiaries and defraying reasonable administrative expenses; and (2) otherwise fully consistent with the duties of every fiduciary with respect to such plan under ERISA and IRC and any other law of the United States.

Requires that the publication of notice of the pendency of such an exemption be at least 30 days prior to its being granted. Revises language relating to the opportunity for a public hearing on the determination to make an exemption.

Provides that, within 90 days after the date of a determination to make an exemption, any aggrieved person may initiate a civil action in any U.S. district court, not withstanding specified provisions and without regard to the amount in controversy, for declaratory judgment and injunctive relief against the Secretary with respect to such an exemption. Sets forth procedures relating to such actions. Requires the district court and any other court acquiring jurisdiction of such action to stay implementation of the challenged exemption during the pendency of any such action. Places the burden of proof on the Secretary regarding the sufficiency of the findings relating to required conditions for such exemptions. Requires the court to award all costs and reasonable attorney fees to any complaining party who prevails, in whole or part, in such action, but prohibits any such award to the Secretary under any circumstances.

Adds to the liability of fiduciaries for breaches of duty under ERISA. Makes fiduciaries subject to punitive damages (in addition to their personal liability under current law) for each breach of any of the responsibilities, obligations, or duties imposed upon fiduciaries by ERISA. Limits the amount of such punitive damages to no more than the amount involved in the breach.

Adds to criminal penalties under ERISA. Makes any person who willfully violates any fiduciary responsibility provision of ERISA, or any regulation or order issued under any such provision, subject, upon conviction, to a fine up to $10,000 or imprisonment for up to five years, or both. Provides for a fine of up to $100,000 in the case of any such violation by a person not an individual.