|
IFA Backs DOL Retirement Rule
On June 1, the IFA Law Center filed comments supporting the U.S. Department of Labor (DOL) proposed rule clarifying an Employee Retirement Income Security Act (ERISA) fiduciary's duty of prudence—and establishing a process-based safe harbor—for selecting designated investment alternatives, including funds with alternative assets, in participant-directed retirement plans.
Why It Matters: Litigation exposure and rising liability insurance costs deter many small franchise employers from offering plans that include alternative assets like private equity. A clear safe harbor lowers that risk, helping employers offer competitive benefits that improve employee retention and may open new avenues of capital access for aspiring franchisees.
What's Next: The IFA Law Center encourages prompt rule finalization and clarification on three points—how the safe harbor applies in pooled/delegated structures, proportionate compliance for small plans, and benchmarking language that avoids unintended standards.
|