Department of Labor Issues New Guidance on Private Equity Investments in Individual Account Plans

On December 21, 2021, the Department of Labor (DOL) issued additional guidance on the use of private equity investments in certain retirement plans, warning that most plan fiduciaries will not have enough experience to adequately evaluate such investments.

The DOL’s guidance relates to a June 3, 2020 “information letter” (which is a non-binding statement) issued by the Employee Benefits Security Administration of the DOL . In that information letter, the DOL addressed private equity investments in “designated investment alternatives” (or DIAs) offered to participants in individual account plans, like 401(k) plans, considered whether ERISA prohibits offering certain private equity investments to participants in individual account plans.

For the full alert, visit the Faegre Drinker website.

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About Author: Rick Pearl

A trusted authority on ERISA matters, Richard Pearl is passionate about representing trustees, plan sponsors, boards of directors, shareholders and service providers in high-stakes and complex ERISA matters. Rick has earned national recognition for his thought leadership, particularly in employee stock ownership plan (ESOP) litigation matters. He has an extensive knowledge of ERISA legislative history and complex issues. View all posts by

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