WASHINGTON – The U.S. Department of Labor’s Employee Benefits Security Administration has rescinded a Dec. 21, 2021, supplemental statement that discouraged fiduciaries from considering alternative assets in 401(k) retirement plan investment menus.In the previous supplemental statement, which undermined an earlier June 3, 2020, information letter, the Biden administration warned that most plan fiduciaries would be “not likely suited to evaluate the use of PE investments in designated alternatives in individual account plans.” This assertion had a chilling effect on the market and took a dismissive view of alternative assets and the capabilities of plan fiduciaries. “This is just another example of how the Biden administration put their thumb on the scale to pick winners and losers,” said U.S. Secretary of Labor Lori Chavez-DeRemer. “Instead of allowing Washington bureaucrats to call the shots, we believe plan fiduciaries should decide which retirement investment options are best for hardworking Americans.”“Retiring with dignity is a key part of the American Dream, but far too few Americans have the opportunity to realize that dream today due to unnecessary government overreach,” Deputy Secretary Keith Sonderling said. “By repealing the Biden administration’s stifling guidance, we look forward to a future where innovative retirement products can deliver increased upside, diversification, and security to the American worker.”The decision to rescind the previous supplemental statement follows President Trump’s latest Executive Order, “Democratizing Access to Alternative Assets for 401(k) Investors,” which directs the Department of Labor to reexamine its guidance regarding fiduciary decisions, ensuring asset allocation funds that include alternative asset investments are available to plan participants. The 2021 supplemental statement marked a departure from previous department norms, which dictate a neutral, principled-based approach to fiduciary investment decisions, consistent with the requirements of Employee Retirement Income Security Act. When evaluating any particular investment type, a plan fiduciary’s decision should consider all relevant facts and circumstances and will necessarily be context specific. The department should not single out particular investments or investment strategies for additional or special scrutiny.