01.07.26

Labor Department Promises Rule on 401(k) Private Investments

by: Matt Wirz

U.S. Labor Department Deputy Secretary Keith Sonderling said a new rule is coming to clarify how alternative investments such as private equity and private credit can be included in pension plans. Speaking at an industry event, he said the rule will emphasize transparent standards to protect plan sponsors from litigation risk, which has discouraged adoption of these assets. The effort follows an executive order from President Trump directing regulators to review pension investment rules. Alternative asset managers have long sought legal “safe harbor” protections. However, investor demand appears limited, with a Harris Poll showing only 10% of U.S. investors dissatisfied with current 401(k) options and seeking more nontraditional investments.

Read the full article on The Wall Street Journal