DOL Proposes Safe Harbor for Fiduciary Duties In Selecting Designated Investment Alternatives; Comments Due June 1
Published March 30, 2026
The Department of Labor (DOL) Employee Benefits Security Administration (EBSA) announced a proposed rule that explains the steps that managers of 401(k) plans should take when considering alternative assets as a component in their investment lineups and establishes a set of process-based safe harbors for plan fiduciaries to use when selecting designated investment alternatives.
Prudence under the Employee Retirement Income Security Act (ERISA) is grounded in process and plan fiduciaries are given maximum discretion and flexibility in selecting any particular investment as a designated investment alternative.
Under the proposed rule, when selecting investment alternatives, plan fiduciaries would need to objectively, thoroughly, and analytically consider, and make determinations on six factors:
- Performance
- Fees
- Liquidity
- Valuation
- Performance benchmarks
- Complexity
Comments are due June 1, 2026.
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