"U.S. Secretary of Labor Lori Chavez-DeRemer stated that the proposed rule aims to fulfill President Trump's promise for a new golden age by fostering a retirement system that allows more Americans to retire with dignity."
"Dennis Kelleher, CEO of Better Markets, criticized the proposal as dangerous, claiming that the legal immunity created by the safe harbor will incentivize financial advisers to promote toxic products, which could become ticking time bombs in retirement accounts."
"Alicia Munnell, a senior adviser at the Center for Retirement Research, expressed skepticism about the proposal, noting that the only party advocating for private equity in 401(k) plans appears to be the private-equity industry."
The Trump administration's 2020 guidance encouraged private equity in retirement plans, while the Biden administration adopted a more cautious stance. The proposed rule allows plan overseers to meet fiduciary obligations by evaluating investments based on six factors. Proponents argue that alternative investments can enhance returns and diversification, while critics warn of increased risks. Concerns have been raised about the influence of the private-equity industry in drafting the proposal and its potential negative impact on retirement accounts.
Read at www.housingwire.com
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