What: On March 31, 2026, the Employee Benefits Security Administration (EBSA) proposed a regulation that clarifies and provides a safe harbor for a fiduciary’s duty of prudence under the Employee Retirement Income Security Act of 1974 (ERISA) in connection with selecting designated investment alternatives for a participant-directed individual account plan, including asset allocation funds that contain alternative assets.
Why: EBSA proposes this rule to comply with Executive Order 14330, which directs the Department of Labor to prioritize actions that reduce ERISA litigation, restricting fiduciaries’ ability to offer investment options when choosing designated investment alternatives. EBSA states that the proposed rule is likely to impact most small participant-directed defined contribution plans, as well as their participants and beneficiaries. EBSA has included an initial regulatory flexibility analysis discussing the proposed rule’s expected economic impacts, costs, benefits, and alternatives.
Action: Review the proposed rule and submit comments before the June 1, 2026, deadline.
PROPOSED RULE:
Fiduciary Duties in Selecting Designated Investment Alternatives
CONTACT: Will Purcell
EMAIL: will.purcell@sba.gov
Is your small business or entity being impacted by a proposed rule? If yes, write a comment letter to the proposing agency.