Key facts
- The Institute for Portfolio Alternatives (IPA) supports a Department of Labor (DOL) proposal.
- The proposal aims to establish a process-based framework for retirement plan fiduciaries.
- This framework is intended to facilitate diversified investments in workplace retirement plans.
- The IPA believes the framework will align workplace plans with strategies used by pensions and institutional investors.
- The proposal suggests six factors employers should consider when offering alternative investments.
The Department of Labor's proposal seeks to clarify the regulatory landscape for retirement plan fiduciaries, particularly concerning the inclusion of alternative investments and diversified strategies. The IPA, representing alternative investment managers, views this as an opportunity to enhance retirement savings outcomes by allowing access to a broader range of investment options, similar to those available to large pension funds and endowments. The proposed framework outlines six factors employers should consider when offering alternative investments, which could limit their liability.