The Labor Department yesterday rescinded a 2021 supplemental statement that discouraged fiduciaries from considering alternative assets in 401(k) retirement plan investment menus.
President Trump last week issued an executive order directing Secretary of Labor Lori Chavez-DeRemer to explore allowing the use of cryptocurrency and other alternative assets in 401(k) plans. In a statement, the department said the 2021 statement was a departure from previous norms, “which dictate a neutral, principled-based approach to fiduciary investment decisions, consistent with the requirements of [the] Employee Retirement Income Security Act.”
“When evaluating any particular investment type, a plan fiduciary’s decision should consider all relevant facts and circumstances and will necessarily be context specific,” the Labor Department said. “The department should not single out particular investments or investment strategies for additional or special scrutiny.”
