Federal Register #RIN 1210AC38

Proposed Rule on Fiduciary Duties for Selecting Investment Alternatives under ERISA

This opportunity concerns a proposed rulemaking by the Department of Labor's Employee Benefits Security Administration regarding fiduciary duties for selecting investment alternatives under ERISA: - Government Buyer: - Department of Labor (DOL) - Employee Benefits Security Administration (EBSA) - No OEMs, vendors, or commercial products are mentioned, as this is a regulatory proposal, not a procurement action. - Products/Services Requested: - No products or services are being procured; the rule addresses regulatory guidance for fiduciaries of retirement plans. - Key Regulatory Focus: - Clarifies fiduciary duty of prudence for selecting investment options in participant-directed individual account plans (e.g., 401(k)s) - Provides a safe harbor for including asset allocation funds with alternative assets (private equity, derivatives, commodities, digital assets, infrastructure, lifetime income strategies) - Implements section 3(c) of Executive Order 14330 to expand access to alternative assets for retirement investors - Emphasizes process-based prudence and flexibility in investment selection - No purchase quantities, part numbers, or delivery requirements are specified. - Place of performance and regulatory activity is the Department of Labor, Washington, DC.

Description

This is a proposed rule by the Department of Labor's Employee Benefits Security Administration that clarifies and provides a safe harbor for fiduciaries' duty of prudence under ERISA when selecting designated investment alternatives for participant-directed individual account plans. The rule addresses the inclusion of asset allocation funds with alternative assets and implements section 3(c) of President Trump's Executive Order 14330, which aims to democratize access to alternative assets for 401(k) investors. Comments on the proposal are due by June 1, 2026.

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