Trump Administration’s Executive Order to Facilitate Availability of Alternative Assets in Defined Contribution Plans: What Does It Mean? (Employee Benefit Plan Review)

In a recent journal article, Goodwin’s Patrick S. Menasco, Bibek Pandey, Brynn D. Peltz, Jeremy I. Senderowicz, John J. Cleary, and Hasan Cetin examine the implications of the Trump administration’s recently issued and long-awaited executive order (EO) encouraging sponsors of 401(k) and other participant-directed defined contribution (DC) plans that are governed by the Employee Retirement Income Security Act of 1974 (ERISA), as amended, to consider offering access to alternative investments. These alternative investments include private equity, private credit, real estate, funds investing in digital assets, commodities, project financing, and lifetime income investments. The EO also directs the Securities and Exchange Commission to facilitate access to alternative assets for participant-directed defined contribution retirement savings plans by revising applicable regulations and guidance. With few exceptions not applicable here, ERISA does not limit the types of investment assets available to covered retirement plans, including DC plans.

Read the authors’ article in the latest issue of Employee Benefit Plan Review (subscription required) to learn how the EO may reshape fiduciary responsibilities, regulatory frameworks, and investment opportunities in retirement plans.