U.S. Defined Contribution Rulemaking
Overview
In March 2026, the U.S. Department of Labor, through the Employee Benefits Security Administration, released a proposed-rule addressing fiduciary duties in the selection of designated investment alternatives for participant-directed defined contribution plans. The proposal establishes a process-based safe harbor intended to clarify how fiduciaries may satisfy ERISA requirements when considering alternative investment strategies, including private markets. The proposed rule is the latest development in the regulatory framework governing retirement plans and more broadly across retail investors accessing private markets.
While the proposal is directed at defined contribution plan fiduciaries, its potential effects extend across the private markets ecosystem and to institutional limited partners (LPs). The rule raises questions regarding structural fit, fiduciary readiness, and market health as private markets exposure is integrated into participant‑directed frameworks with distinct liquidity, transparency, and oversight needs.
The analysis below provides additional details on the proposed rule and its implications on LPs and private markets.
Key Resources
Below, find ILPA’s analysis of the initial rule and other resources for navigating this rulemaking.
- Go to U.S. Department of Labor Proposed Rule, Fiduciary Duties in Selecting Designated Investment Alternatives U.S. Department of Labor Proposed Rule, Fiduciary Duties in Selecting Designated Investment AlternativesInitial analysis outlining key aspects of the proposed rule and implications on LPs.
- Go to ILPA Statement on Proposed U.S. Regulations Regarding Alternative Assets in 401(k) PlansILPA Statement on Proposed U.S. Regulations Regarding Alternative Assets in 401(k) PlansILPA’s initial press release to the industry.
- Go to Fiduciary Duties in Selecting Designated Investment Alternatives Fiduciary Duties in Selecting Designated Investment AlternativesOfficial link to the proposed rule.
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