WASHINGTON, D.C. – U.S. Senator Steve Daines today sent a letter to U.S. Department of Labor Acting Secretary Sonderling expressing support for DOL’s proposed rule to implement President Trump’s Executive Order that unlocks access to investments in alternative assets for Main Street America and retirees with a 401(k) defined-contribution plan.
Senators Jim Banks (R-Ind.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Katie Britt (R-Ala.), Shelley Moore Capito (R-W.Va.), Bill Cassidy (R-La.), John Cornyn (R-Texas), Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), John Curtis (R-Utah), Deb Fischer (R-Neb.), Lindsey Graham (R-S.C.), Bill Hagerty (R-Tenn.), Jon Husted (R-Ohio), Ron Johnson (R-Wis.), Cynthia Lummis (R-Wyo.), Dave McCormick (R-Penn.), Mitch McConnell (R-Ky.), Ashley Moody (R-Fla.), Bernie Moreno (R-Ohio), Rand Paul (R-Ky.), James Risch (R-Idaho), Pete Ricketts (R-Neb.), Mike Rounds (R-S.D.), Eric Schmitt (R-Mo.), Tim Scott (R-S.C.), Tim Sheehy (R-Mont.), Thom Tillis (R-N.C.), Tommy Tuberville (R-Ala.), and Todd Young (R-Ind.) joined Daines in sending the letter.
“For decades, defined-benefit pension plans and other sophisticated investors have allocated to alternative assets to enhance risk adjusted returns, improve diversification, and strengthen long term portfolio resilience. However, nearly 90 million Americans saving for retirement through defined contribution plans, such as 401(k)s, have largely been excluded from these opportunities. The proposed rule would help close this gap by providing fiduciaries with clearer guidance on the prudent selection of diversified investment options…
…The proposed rule would also address the significant litigation risk that has discouraged fiduciaries from offering professionally managed investment options that include alternative assets. For years, plan fiduciaries have faced costly litigation challenging prudent investment decisions, creating a strong disincentive to offer innovative or diversified products even where doing so could benefit plan participants. The rule’s safe harbor would help reduce this risk while preserving important protections for workers and ensuring that plan sponsors remain focused on acting in the best interests of beneficiaries,” they wrote in the letter.
Read the full letter HERE.
Background:
Daines has been a strong supporter of expanding access to alternative assets- read his letter to President Trump urging this action HERE and his statement praising the President’s Executive Order HERE.
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Contact: Matt Lloyd, Gabby Wiggins