DOL Proposal Expands Flexibility for Retirement Plan Investments

Event summary

  • The U.S. Department of Labor proposed a regulation on investment selection for retirement plans, reinforcing fiduciary principles under ERISA.
  • The proposal introduces a safe harbor framework for evaluating designated investment alternatives, including six key factors: performance, fees, liquidity, valuation, benchmarking, and complexity.
  • Empower, managing $2 trillion in assets, supports the proposal for its balanced, investment-neutral approach.
  • The proposal follows an August 2025 executive order by President Trump to expand access to alternative assets in 401(k) plans.

The big picture

The DOL's proposal aims to balance flexibility and fiduciary responsibility in retirement plan investments, aligning with broader industry trends toward expanding access to alternative assets. Empower's support underscores the strategic importance of this shift for firms managing large-scale retirement assets. The proposal follows an executive order by President Trump, highlighting the regulatory focus on democratizing access to diverse investment options within ERISA-governed plans.

What we're watching

Regulatory Clarity
How the DOL's safe harbor framework will affect the adoption of alternative assets in retirement plans.
Market Impact
Whether the proposal will lead to increased investment in alternative assets by retirement plan fiduciaries.
Industry Response
The pace at which other financial services firms will align with the DOL's proposed guidelines.