In June, the US Department of Labor issued an information letter indicating that it will allow defined contribution retirement plans (such as 401(k) plans) to indirectly invest in private equity funds. While information letters are not binding, this new guidance creates a significant opportunity for plan sponsors to consider investment options that include private equity funds. However, it will be important for both plan sponsors and funds to carefully evaluate potential investments for compliance with fiduciary requirements.
DOL Creates Path for 401(k) Plans to Offer Private Equity Investment Options
By Todd Solomon and Brian Tiemann on October 29, 2020
Posted In Employee Benefits, Fiduciary and Investment Issues
Todd SolomonTodd A. Solomon focuses his practice on designing, amending and administering pension, profit sharing, 401(k), employee stock ownership and 403(b) plans, as well as nonqualified deferred compensation arrangements. He also counsels privately and publicly held corporations and tax-exempt entities regarding fiduciary issues under the Employee Retirement Income Security Act (ERISA), employee benefits issues involved in corporate transactions, executive compensation matters and the implementation of benefit programs for domestic partners of employees.Read Todd A. Solomon's full bio.
Brian TiemannBrian J. Tiemann counsels public and private companies on a broad range of employee benefit matters, including matters related to pension plans, 401(k) plans and executive and incentive compensation. He advises plan fiduciaries with respect to their fiduciary duties, investment policies and alternative investments. He also advises multinational clients on global employee benefits matters, particularly with respect to global incentive compensation plans. Brian has extensive experience negotiating investment management agreements and service provider agreements. Read Brian Tiemann's full bio.
Related Posts
- When Are Cryptocurrencies Appropriate Investments for Retirement Plans and IRAs?
- Environmental, Social and Governance (ESG) Investing for Retirement Plans: Where We’ve Been, and Where We Are Now
- It Could Happen to You: Tips for Acing a Benefit Plan Audit
- Employee Benefit Plans: Important Considerations for Year-End and 2025
- Cryptocurrency for Employee Benefits Lawyers: What You Need to Know
BLOG EDITORS
STAY CONNECTED
TOPICS
ARCHIVES
RECENT POSTS
- Complying With the ‘Relevant Data’ Requirement Under the Final 2024 Mental Health Parity and Addiction Equity Act: A Proposal for a Workable Alternative
- HHS Letter Reiterates Expectations for Language Accessibility
- Employee Benefit Plans: Important Considerations for Year-End and 2025
- Post-Election Outlook: Issues to Watch for Pharmacy Industry Stakeholders
- Post-Election Health Policy Priorities
