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US issues draft rules on private assets inclusion in 401k retirement plans
The Department of Labor aims to open $12 trillion in defined-contribution assets to private equity and credit, with a public comment period to follow the rule's publication.
- The Department of Labor completed White House review of a rule intended to shield 401 plans from lawsuits, following President Donald Trump's executive order last August directing the agency to open retirement accounts to private assets.
- With $12 trillion in defined-contribution cash available, private markets firms are targeting retirement accounts to sustain growth as institutional investors have cut back on future private equity allocations.
- Jim Baker, executive director of the Private Equity Stakeholder Project, described the market as "melting down" in recent weeks, characterizing the 401 access plan as a "bailout" for struggling private capital.
- Securities and Exchange Commission Commissioner Mark Uyeda defended the initiative, stating it is "not the government's role" to restrict investment opportunities while encouraging prudent inclusion of private assets in 401 plans.
- Following public release, the rule will face a 30-or 60-day comment period before final review; Craig Copeland of the Employee Benefit Research Institute notes current market instability complicates the outlook.
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Employers that want to offer 401(k) participants access to private equity get new rule
By Jeanne Sahadi, CNN (CNN) — The Department of Labor unveiled on Monday a new proposed rule for 401(k) plan sponsors that want to offer plan participants the option of investing in private equity and other “alternative” investments like crypto and commodities. The proposed rule gives plan fiduciaries “maximum discretion and flexibility in selecting any particular investment as a designated investment alternative,” according to the DOL. “The dep…
US issues draft rules on private assets inclusion in 401k retirement plans
The U.S. Department of Labor on Monday issued long-awaited proposed new rules intended to clarify how retirement plans can add alternative assets ranging from private equity to cryptocurrencies to 401(k) accounts.
·United Kingdom
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Total News Sources13
Leaning Left1Leaning Right2Center8Last UpdatedBias Distribution73% Center
Bias Distribution
- 73% of the sources are Center
73% Center
C 73%
R 18%
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