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IPA's Support for DOL Proposal on Retirement Plans

On June 1, 2026, the Institute for Portfolio Alternatives (IPA) publicly supported the U.S. Department of Labor's (DOL) proposed regulation titled "Fiduciary Duties in Selecting Designated Investment Alternatives." This regulatory initiative aims to establish a principles-based fiduciary framework specifically tailored for defined contribution retirement plans. The overarching objective is to enhance access to professionally managed alternative investment strategies that could greatly benefit American workers and their retirement savings.

Understanding the Proposal

The proposed regulation emphasizes a modern approach to portfolio diversification, aligning workplace retirement plans with the investment strategies that have been effectively utilized by institutional investors and pension funds for many years. Anya Coverman, the President and CEO of IPA, highlighted that the new regulatory framework recognizes how diversified portfolios are created today. It will provide fiduciaries with clearer guidance in assessing investment strategies based on the long-term outcomes for plan participants rather than relying solely on retrospective results.

For decades, institutional investors have successfully embraced alternative investments, leveraging them to bolster diversification, mitigate volatility, and enhance long-term risk-adjusted returns. However, defined contribution plans have faced significant challenges due to the existing regulatory uncertainty and the risk of litigation, which have inhibited their ability to access similar strategies.

The Importance of a Prudent Process

One of the critical components of the DOL's proposal is its focus on utilizing a prudent process for evaluating fiduciary decisions. Instead of assessing decisions based solely on past performance—as has traditionally been the case—the proposal encourages fiduciaries to consider the ongoing needs of participants. It also enables fiduciaries to rely on qualified investment professionals while adhering to established practices for valuation and liquidity.

IPA has urged the DOL to provide additional guidance on the six core factors outlined in the regulation: performance, fees, liquidity, valuation, benchmarking, and complexity. These factors are pivotal for effectively managing the professionally managed investment structures that will likely be of interest to fiduciaries.

Encouraging Legislative Support

In its comments to the DOL, IPA not only supported the proposed rule but also advocated for Congress to build upon this framework. Specifically, IPA called for the establishment of a durable statutory fiduciary framework and a safe harbor for professionally managed diversified investment strategies, including alternative investments. Such measures would provide fiduciaries with enhanced certainty in their long-term planning and broader access to diversified retirement solutions that would greatly benefit American workers.

About IPA

The Institute for Portfolio Alternatives (IPA) is recognized as a leading voice in the alternative investments industry. The organization advocates for various asset classes including private real estate, private equity, private credit, and infrastructure. In addition to its advocacy efforts at federal and state levels, IPA organizes innovative events and conferences that facilitate high-quality networking opportunities and educational resources.

For more information about IPA and its initiatives, visit www.ipa.com or follow the organization on LinkedIn.