The Trump administration is set to pave the way for more employers to give workers the option to incorporate private investments into their retirement portfolios. A forthcoming executive order will instruct the Department of Labor and the Securities and Exchange Commission to develop guidance for employers and retirement plan administrators on how to include these types of assets in 401(k) plans, the Wall Street Journal reported on July 15. Such a move would be part of a broader push by the administration to encourage the presence of non-traditional investments, such as cryptocurrencies, in retirement plans. While defined benefit plans such as pensions have been investing in private equity for years, these types of investments are much less common in the defined contribution space, said Lisa Loesel, a partner in the employee benefits practice group with law firm Seyfarth. As of last year, just 2.2% of plan sponsors offered any alternative investments in their 401(k) plans, according to a benchmarking report from the trade journal PLANSPONSOR. For more on how the administration’s move could affect benefits leaders, keep reading here.—CV |