IAA Supports DOL Proposal on Retirement Plan Investment Options
June 1, 2026
Contact: IAA VP of Communications & Marketing Janay Rickwalder
The Investment Adviser Association supports the Department of Labor’s proposed rule on fiduciary duties when selecting investment options for retirement plans, while also making targeted recommendations to improve the proposal.
The proposal would establish a neutral framework for evaluating designated investment alternatives. It would not favor or disfavor any particular asset class or investment strategy. Instead, fiduciaries would continue to follow a prudent process that considers factors such as performance, fees, liquidity, valuation, benchmarking, and complexity as they decide on investments in the best interest of the plan and plan participants.
The IAA supports the proposal because it preserves fiduciary discretion while maintaining important protections for retirement investors. It also reinforces ERISA’s longstanding focus on a prudent process rather than outcomes. This will help ensure fiduciaries are not second-guessed based on hindsight when they have acted solely in the interests of plans and plan participants when selecting and monitoring investment options and have followed a prudent, well-documented process.
In its comment letter, the IAA recommended targeted refinements, including asking the DOL to recognize the broader value of active management, clarify that fiduciaries may use reasonable methods to evaluate risk-adjusted returns, and take a flexible approach to valuation that focuses on identifying, managing, and mitigating conflicts of interest.
The IAA will continue to engage with the DOL as the rulemaking moves forward.
