In June 2020, a letter from the Department of Labor opened the possibility for 401(k) plans to include private-equity investments, aiming to provide savers with access to high-return alternative assets. However, progress has been stymied, with only limited offerings introduced since then. Industry leaders, like those at Apollo and Blackstone, advocate for protection against lawsuits over fees as a prerequisite for further adoption. As former President Trump returns to political prominence, discussions about litigation reform are intensifying, suggesting potential future adjustments to retirees' investment options.
The move, Scalia said, would "help Americans saving for retirement gain access to alternative investments that often provide strong returns" and help "level the playing field for ordinary investors."
Apollo CEO Marc Rowan explained that litigation relief is essential for the Trump administration to open up 401(k)s to nontraditional investment strategies, highlighting a major hurdle in the process.
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