Overview
- The Labor Department’s proposal, open for public comment through June 1, 2026, would give plan fiduciaries a presumption of prudence if they follow and document a structured review when picking investment options.
- The safe harbor is asset-neutral and would let fiduciaries consider private equity, real assets, digital assets, and insurance products if a prudent process supports the choice.
- The framework calls for six checks that are simple to name and hard to skip: performance, fees, liquidity, valuation, benchmarking, and complexity.
- The rule applies to designated investment alternatives on a plan’s menu and does not cover brokerage windows or other self-directed brokerage accounts.
- Legal analysts say the focus on process could blunt hindsight lawsuits over fees and performance, though courts may test the rule’s force given the Supreme Court’s cutback of agency deference and the DOL’s promise of more guidance on monitoring.