Overview

• The executive order directs the DOL, SEC and Treasury to draft new rules, guidance or safe harbors by February 2026 to clarify ERISA fiduciary duties and litigation protections for offering private equity, real estate, digital assets, commodities, infrastructure and lifetime-income investments in defined contribution plans.
• On August 12, the DOL rescinded its December 2021 supplemental guidance, signaling a shift back to a neutral, principles-based approach for plan fiduciaries considering alternative asset allocations.
• Asset managers and retirement-service providers are racing to develop wrapper vehicles, interval and tender-offer funds, target-date products with private allocations and evergreen structures to tap into an estimated $12.2 trillion in DC assets.
• Plan sponsors and legal experts warn that high fees, illiquidity, valuation complexities, recordkeeping burdens and heightened ERISA litigation risk could deter fiduciaries absent clear safe-harbor protections.
• Republican lawmakers and industry groups have urged robust litigation shields for plan sponsors, while Democratic senators and consumer advocates demand stronger oversight of fees, disclosures and product suitability.