U.S. SENATE – U.S. Senator Steve Daines and his colleagues sent a letter today to the U.S. Department of Labor (DOL) urging Secretary Lori Chavez-DeRemer to expeditiously implement President Trump’s recent Executive Order that unlocks access to investments in alternative assets for Main Street America and retirees with a 401(k) defined-contribution plan.
Senators Markwayne Mullin (R-Okla.), Jim Banks (R-Ind.), Bernie Moreno (R-Ohio), Cynthia Lummis (R-Wyo.), Bill Hagerty (R-Tenn.), Katie Britt (R-Ala.), Eric Schmitt (R-Mo.) and Bill Cassidy (R-La.) joined Daines in sending the letter.
“We are thankful for President Trump’s recent executive order directing the Department of Labor to expand Americans’ access to a modern retirement framework by increasing investment choice and diversification. Like the President, we believe this is a critical step in leveling the playing field for the 90 million American workers with a 401(k) or other defined contribution retirement plan who lack the freedom to invest in private equity, cryptocurrency, and other alternative assets…
… We urge you to work expeditiously to implement the executive order with a regulatory safe harbor through a formal notice and comment rulemaking. Doing so will maximize the order’s effectiveness and ensure industry has the certainty needed to deliver on behalf of American retirees…
… Today, more than eight times as many workers have defined-contribution plans than defined-benefit plans, a significant reversal from 1975 when defined-benefit plans outnumbered defined-contribution plans. However, whereas defined-benefit plans allocate roughly one-third of their $12 trillion in retirement assets to alternative assets, these same assets are unfairly unavailable to those with defined-contribution or 401(k) plans—America’s preferred retirement savings vehicle. This disparate treatment is especially unfair considering the lack of material differences between the average characteristics or risk profiles of workers with a 401(k) versus those with a defined-benefit plan. As the preference for defined-contribution plans has continued to grow, modernizing the regulatory framework and addressing the lack of equal access has become even more essential to enhancing the retirement security of America’s workers,” the senators wrote in the letter.
Read the full letter HERE.
Background:
President Trump’s recent Executive Order levels the playing field for millions of Americans who are unable to invest in cryptocurrency, private equity, and other alternative assets. Daines sent a letter to President Trump in May urging this action- read it HERE. Read Daines’ statement praising the President’s EO HERE.
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Contact: Matt Lloyd, Gabby Wiggins