Letter to DOL in response to "Fiduciary Duties in Selecting Designated Investment Alternatives" proposal

The U.S. Chamber of Commerce, through Vice President of Retirement Policy Chantel Sheaks, submitted comments to the Department of Labor in response to the proposed regulation on "Fiduciary Duties in Selecting Designated Investment Alternatives" (RIN 1210-AC38), expressing general support for the DOL's effort to provide asset-neutral guidance to plan fiduciaries selecting investment options for participant-directed defined contribution plans, while offering several general recommendations for improvement, such as:

• Clarifying that the listed factors are non-exclusive and that failure to apply any of them does not constitute a breach of fiduciary duty
• Replacing the phrase "maximize risk-adjusted returns" with "risk-adjusted expected returns" to reflect ERISA's prudence standard
• Avoiding the perception for a preference for ERISA Section 3(21) fiduciaries over other qualified advisors or internal experts.

The letter also calls for specific revisions to the six factors, all aimed at ensuring the final regulation provides meaningful, workable guidance without inadvertently expanding fiduciary liability or creating new grounds for litigation. Click on the link below for the full letter.

About the author

Chantel Sheaks

Chantel Sheaks develops, promotes, and publicizes the Chamber’s policy on retirement plans, nonqualified deferred compensation, and Social Security.

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