"The decision to rescind the previous supplemental statement follows [EO 14330] ... which directs the [DOL] to reexamine its guidance regarding fiduciary decisions, ensuring asset allocation funds that include alternative asset investments are available to plan participants. 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]."  MORE >>

"[1] Direct versus indirect investment ... [2] Digital assets ... [3] Lifetime income ... [4] Adoption of safe harbors and other regulations and guidance ... [5] Coordination among regulators ... [6] ERISA litigation."   MORE >>

"The order does not: [1] Change ERISA fiduciary standards ... [2] Require inclusion of alternative assets in retirement plans ... [3] Provide guidance or safe harbors ... [C]ompanies should ... [1] Update fiduciaries ... [2] Monitor forthcoming guidance ... [3] Understand alternative asset classes ... [4] Understand investment requirements ... [5] Tread carefully."  MORE >>

"What was the tussle behind the Executive Order? ... What are alternative assets? ... Has this been available before? ... Will we be required to offer alternative assets? ... Will the lawsuits against defined contribution plans stop? ... What is next? ... What should plan sponsors do? "  MORE >>

"[I]nvestment fiduciaries will have to focus even more intently on engaging in a prudent process and documenting that process when evaluating the merits of alternative assets for participants in ERISA defined contribution retirement plans."  MORE >>

31 pages. "Defined contribution (DC) plan allocation to alternative investments can have significant benefits to plan participants ... DC plan participants would benefit from diversification, higher risk-adjusted returns, and higher retirement income.... Younger cohorts benefit more relative to older cohorts from an allocation to private equity.... [R]etail investor access to private equity through defined contribution plans can result in a GDP benefit of up to $35 billion, or 0.12 percent of GDP."  MORE >>

"68% currently use private market investments ... 58% of advisors familiar with them would recommend them in retirement plans. 66% say ERISA/Regulatory clarity would increase their likelihood of recommending private market investments in retirement plans. This rises to 75% for advisors who also serve on pension/DB plans."  MORE >>

18 pages. "Investors who describe themselves as unwilling to take risks may be vulnerable to a different form of market risk -- the risk of low long- term returns.... In fact, certain behaviors -- such as excessive cash holdings or underinvestment in diversified growth assets -- can quietly increase exposure. But identifying affected investors through traditional risk profiling is often difficult[.]"  MORE >>

"[Advisors] don't see AI as a threat. Rather, they view it as an extension of the tech innovation that's been going on for decades; it can be used for certain tasks ... to make them more efficient and create more capacity.... AI will not be able to replicate the human connection advisors have with their clients."  MORE >>

"More than a third of pre-retirees (35%) do not find the 4% Rule ... to be a relevant retirement rule of thumb in today's economic environment.... 53% do not find the '100 Minus Your Age in Stocks' rule ... to be relevant in today's economic environment.... Over half of pre-retiree investors do not believe in the concept of a 'magic number' for retirement savings.... Nearly two thirds (64%) of respondents said that the norm of retiring at age 65 doesn't apply to people like them, up from 59% a year ago."  MORE >>

"[T]he longer people live ... the more expensive the program.... Trustees Reports in the next few years may well show larger 75-year deficits in the coming years. Even with higher projected deficits, however, the levers are available on both the revenue and benefit side to restore balance. Congress just needs to act."  MORE >>

"For nonprofits, the 21% excise tax on executive compensation over $1 million has been dramatically expanded from applying to only the top 5 highest-paid employees to all current or former employees earning over $1 million. For public companies, the expansion of Section 162(m) deduction limitations creates new incentives to adopt nonqualified deferred compensation (NQDC) plans as tax-efficient compensation strategies."  MORE >>

"Historically, service providers had to mail a physical copy of their Section 83(b) elections to the appropriate IRS office within 30 days of the transfer. In a much-anticipated move, the IRS now allows Form 15620 to be completed and filed online through its website."  MORE >>