Alternative Investments in 401(k)s and Shareholder Proposal Discussions
Department of Labor Releases Alternative Investments Rule
The Department of Labor released its proposed rule this morning that will broaden access to alternative investments in employer-sponsored retirement plans, including private equity, real estate, and digital assets.
Call and response: This proposed rule follows President Trump’s August Executive Order that called for the expansion of alternative investments in 401(k)s.
Safe harbor: Previously, 401(k)s were not prohibited from including alternative investments; however, they were excluded due to questions on fiduciary duty. The new rule creates a “safe harbor” that will protect plan sponsors from litigation, provided they consider six factors: fees, liquidity, valuation, performance benchmarks, and complexity.
Next steps: The proposed rule will undergo a 60-day public comment period. Comments will be due 60 days after the proposed rule is posted on the Federal Registrar.
Weinberg Center: Session on Shareholder Proposals this Proxy Season
The University of Delaware Weinberg Center for Corporate Governance is hosting a new session “ESG in the Boardroom and Shareholder Proposals” on April 28 from 2:00 to 5:30pm ET.
Participants: The discussion will be moderated by John White (Cravath) and Larry Cunningham (Weinberg, PubCo Director) with participants from PubCo, The Conference Board, Ceres, the SEC, the Society for Corporate Governance, Richards, Mayer Brown, and Wachtell.
Legal opinions: In preparation for the event, the Weinberg Center conducted a survey of law professors to gather legal opinions on the practice of shareholder proposals under SEC Rule 14a-8. View the survey here.
What We are Watching This Week
US SIF Policy Webinar: Join the Policy Team on April 8 at 2pm ET to hear the latest policy updates affecting sustainable investing. Register here.
US SIF FORUM Registration: Registration for FORUM 2026 Investing Above the Noise is still open, be sure to register today!