Overview

• The Labor Department and SEC have started drafting new ERISA fiduciary guidelines to allow private equity, venture capital, crypto and real estate in employer-sponsored retirement plans.
• Private equity and crypto firms are lobbying regulators and plan sponsors to influence 401(k) product design and access the $12 trillion retirement market.
• Asset managers are exploring vehicles with fee caps below the traditional 2% management and 20% performance model to create 401(k)-compatible private market offerings.
• Critics warn that illiquid and manually priced assets could clash with daily-traded systems, creating valuation challenges and exposing savers to higher market risks.
• Plan sponsors will need transparent disclosures and legal safe harbors to manage operational complexity and guard against investor lawsuits under the revised rules.