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Whereas DOL hasn’t mentioned cryptocurrency is inherently imprudent, the company cautioned 401(okay) plan fiduciaries to “train excessive care” when contemplating cryptocurrency as an funding possibility. In separate guidance, DOL prompt that fiduciaries of “typical” DC plans lack the required experience to guage PE investments. Invoice supporters say DOL’s stance is at odds with the necessity to let DC plan individuals have entry to the “full vary” of probably extra profitable (however riskier) funding methods utilized by outlined profit (DB) plan managers.
DOL’s steerage prompted some Senate Republicans to introduce one other comparable invoice (S 4147) in Might. The Monetary Freedom Act would offer that ERISA doesn’t restrict DC plan fiduciaries’ capacity to pick out any explicit kinds of investments, so long as individuals can select from broad vary of funding choices. Nonetheless, not one of the GOP payments up to now would require that fiduciaries give plan individuals entry to particular asset lessons or create a protected harbor from ERISA’s fiduciary duties.
With Democrats nonetheless accountable for Congress, the Retirement Financial savings Modernization Act is unlikely to cross this 12 months. The Senate model is earlier than the Committee on Well being, Training, Labor, and Pensions and is sponsored by Sens. Pat Toomey, R-PA, Tim Scott, R-SC, and Cynthia Lummis, R-WY. Rep. Peter Meijer, R-MI, is sponsoring the Home counterpart, which is pending with the Training and Labor Committee.
Non-Mercer sources
- S 4973, the Retirement Financial savings Modernization Act (Congress, Sept. 28, 2022)
- Press release (Sen. Tim Scott, Sept. 29, 2022)
Mercer Legislation & Coverage sources
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