The Employee Benefits Security Administration announced the rescission of a December 21, 2021 supplemental statement that discouraged fiduciaries from considering alternative assets in 401(k) retirement plan investment menus. In the previous supplemental statement, the Biden Administration warned that most plan fiduciaries would be “not likely suited to evaluate the use of PE investments in designated alternatives in individual account plans” which the Trump EBSA said had a “chilling effect on the market and took a dismissive view of alternative assets and the capabilities of plan fiduciaries.” The Trump EBSA also said the 2021 supplemental statement marked a departure from previous department norms, which dictate a neutral, principled-based approach to fiduciary investment decisions, consistent with the requirements of ERISA.
