PLANADVISER - January/February 2022 - 6

Legislative and Judicial Actions
compliance news //
DOL Tells 401(k) Plans
To Skip Private Equity
The Department of
Labor
(DOL)'s
Employee Benefits Security Administration
(EBSA) has issued a statement
addressing the appropriateness
of private equity investments for
defined contribution (DC) plans. In it,
the agency cautions plan fiduciaries
against presuming that, based on its
2020 information letter, the investment
class makes a good component for a
plan's designated investment alternative.
The statement clarifies that planlevel
fiduciaries of 401(k) plans, particularly
small plans, typically lack the
expertise to make prudent decisions
regarding such investments-e.g., how
to evaluate and monitor them.
EBSA's statement addresses stakeholder
concerns that the 2020 letter
could be read as broadly endorsing the
benefits of the investments and downplaying
the risks to participants.
The statement says only in limited
use cases are the investments appropriate
for a typical 401(k). According
to Ali Khawar, acting assistant secretary
for EBSA, it " emphasizes the
limited focus of the information letter
as a response to large plan sponsors
who offer both defined benefit
[DB]
plans and participant-directed retirement
savings plans, and who invest in
private equity for their defined benefit
plans but do not do so for the participant-directed
plans. "
Many DB plans have unwound plan
investment exposures to public equities
and diverted some risk assets into
private equity, real estate and hedge
funds for alternative assets exposure.
Alternative investments can offer diversification
away from volatile equities
and may offer superior risk-adjusted
returns to public market counterparts.
SCOTUS Rules Against
Northwestern
The U.S. Supreme Court (SCOTUS)
has issued a highly anticipated ruling
in an Employee Retirement Income
Security Act (ERISA) lawsuit known
as Hughes v. Northwestern University.
The question before the high court
was whether participants in a defined
contribution (DC) ERISA plan had
stated a plausible claim for relief
against plan fiduciaries. The plan
sponsor fiduciaries were accused of
6 | planadviser.com January-February 2022
Art by Jonathon Rosen

http://www.planadviser.com

PLANADVISER - January/February 2022

Table of Contents for the Digital Edition of PLANADVISER - January/February 2022

The Virtual Reality
Getting to Yes
A Share of the Wealth
The Full View
Life Happens
An Objectivity Lesson
Best Execution Standard
PLANADVISER - January/February 2022 - Cover1
PLANADVISER - January/February 2022 - Cover2
PLANADVISER - January/February 2022 - 1
PLANADVISER - January/February 2022 - 2
PLANADVISER - January/February 2022 - 3
PLANADVISER - January/February 2022 - 4
PLANADVISER - January/February 2022 - 5
PLANADVISER - January/February 2022 - 6
PLANADVISER - January/February 2022 - 7
PLANADVISER - January/February 2022 - 8
PLANADVISER - January/February 2022 - 9
PLANADVISER - January/February 2022 - 10
PLANADVISER - January/February 2022 - 11
PLANADVISER - January/February 2022 - 12
PLANADVISER - January/February 2022 - 13
PLANADVISER - January/February 2022 - 14
PLANADVISER - January/February 2022 - 15
PLANADVISER - January/February 2022 - 16
PLANADVISER - January/February 2022 - 17
PLANADVISER - January/February 2022 - The Virtual Reality
PLANADVISER - January/February 2022 - 19
PLANADVISER - January/February 2022 - 20
PLANADVISER - January/February 2022 - 21
PLANADVISER - January/February 2022 - 22
PLANADVISER - January/February 2022 - 23
PLANADVISER - January/February 2022 - Getting to Yes
PLANADVISER - January/February 2022 - 25
PLANADVISER - January/February 2022 - 26
PLANADVISER - January/February 2022 - 27
PLANADVISER - January/February 2022 - A Share of the Wealth
PLANADVISER - January/February 2022 - 29
PLANADVISER - January/February 2022 - 30
PLANADVISER - January/February 2022 - 31
PLANADVISER - January/February 2022 - The Full View
PLANADVISER - January/February 2022 - 33
PLANADVISER - January/February 2022 - 34
PLANADVISER - January/February 2022 - 35
PLANADVISER - January/February 2022 - Life Happens
PLANADVISER - January/February 2022 - 37
PLANADVISER - January/February 2022 - An Objectivity Lesson
PLANADVISER - January/February 2022 - Best Execution Standard
PLANADVISER - January/February 2022 - 40
PLANADVISER - January/February 2022 - Cover3
PLANADVISER - January/February 2022 - Cover4
https://www.planadviserdigital.com/planadviser/winter_2023
https://www.planadviserdigital.com/planadviser/fall_2023
https://www.planadviserdigital.com/planadviser/summer_2023
https://www.planadviserdigital.com/planadviser/industryleader_2023
https://www.planadviserdigital.com/planadviser/spring_2023
https://www.planadviserdigital.com/planadviser/november_december_2022
https://www.planadviserdigital.com/planadviser/september_october_2022
https://www.planadviserdigital.com/planadviser/july_august_2022
https://www.planadviserdigital.com/planadviser/may_june_2022
https://www.planadviserdigital.com/planadviser/industry_leader_awards_2022
https://www.planadviserdigital.com/planadviser/march_april_2022
https://www.planadviserdigital.com/planadviser/january_february_2022
https://www.planadviserdigital.com/planadviser/november_december_2021
https://www.planadviserdigital.com/planadviser/september_october_2021
https://www.planadviserdigital.com/planadviser/july_august_2021
https://www.planadviserdigital.com/planadviser/may_june_2021
https://www.planadviserdigital.com/planadviser/march_april_2021
https://www.planadviserdigital.com/planadviser/january_february_2021
https://www.planadviserdigital.com/planadviser/november_december_2020
https://www.planadviserdigital.com/planadviser/september_october_2020
https://www.planadviserdigital.com/planadviser/july_august_2020
https://www.planadviserdigital.com/planadviser/may_june_2020
https://www.planadviserdigital.com/planadviser/march_april_2020
https://www.planadviserdigital.com/planadviser/january_february_2020
https://www.planadviserdigital.com/planadviser/november_december_2019
https://www.planadviserdigital.com/planadviser/september_october_2019
https://www.planadviserdigital.com/planadviser/july_august_2019
https://www.planadviserdigital.com/planadviser/may_june_2019
https://www.planadviserdigital.com/planadviser/march_april_2019
https://www.planadviserdigital.com/planadviser/january_february_2019
https://www.planadviserdigital.com/planadviser/november_december_2018
https://www.planadviserdigital.com/planadviser/september_october_2018
https://www.planadviserdigital.com/planadviser/july_august_2018
https://www.planadviserdigital.com/planadviser/may_june_2018
https://www.planadviserdigital.com/planadviser/march_april_2018
https://www.planadviserdigital.com/planadviser/january_february_2018
https://www.planadviserdigital.com/planadviser/november_december_2017
https://www.planadviserdigital.com/planadviser/september_october_2017
https://www.planadviserdigital.com/planadviser/july_august_2017
https://www.nxtbookmedia.com