Overview

• On August 12, the Labor Department rescinded its 2021 supplemental private‑equity warning, returning to a neutral, principles‑based stance on alternatives in defined‑contribution plans.
• The executive order directs the DOL, SEC and Treasury to complete a 180‑day review that could produce clarifying guidance and fiduciary safe harbors and asks the SEC to consider revising accredited investor and qualified purchaser rules.
• Legal analyses note that the Supreme Court’s Loper Bright ruling reduces courts’ deference to agency interpretations, so future safe harbors may not shield fiduciaries from ERISA lawsuits.
• Asset managers and recordkeepers are developing 401(k)‑compatible vehicles such as collective investment trusts and target‑date funds to incorporate alternative assets, with some products being evaluated for use as default options.
• Coverage highlights operational and participant‑protection issues for plan menus, including illiquidity, infrequent valuations, higher fees and an emphasis on offering exposure through asset‑allocation funds rather than direct holdings.