Process-based framework would help align workplace retirement plans with strategies long used by pensions and institutional investors
WASHINGTON, June 1, 2026 /PRNewswire/ — The Institute for Portfolio Alternatives (IPA) today submitted formal comments supporting the Department of Labor’s proposed regulation, “Fiduciary Duties in Selecting Designated Investment Alternatives,” which would establish a principles-based fiduciary framework for defined contribution retirement plans and expand access to professionally managed alternative investment strategies.
“The proposed framework recognizes how modern diversified portfolios are constructed and gives fiduciaries greater clarity to evaluate investment strategies based on long-term participant outcomes,” said Anya Coverman, President and CEO of the Institute for Portfolio Alternatives. “By focusing on prudent process rather than hindsight, the Department can help defined contribution plans incorporate the diversified, professionally managed approaches that institutional investors and pension funds have relied on for decades and improve long-term outcomes for American savers.”
For decades, institutional investors and defined benefit pension plans have used alternative investments to enhance diversification, manage volatility, and improve long-term risk-adjusted returns. However, regulatory uncertainty and litigation risk have limited access to similar strategies within defined contribution plans.
The Department’s proposal would reaffirm that fiduciary decisions should be evaluated through a prudent process rather than after-the-fact results, while preserving flexibility for plan fiduciaries to assess investments based on participant needs and rely on qualified investment professionals and established valuation and liquidity practices.
In its comments, IPA encouraged the Department to provide additional guidance on the rule’s six core factors—performance, fees, liquidity, valuation, benchmarking, and complexity—as they apply to professionally managed investment structures.
The IPA also believes that Congress should build on the proposal by establishing a durable statutory fiduciary framework and safe harbor for professionally managed diversified investment strategies, including alternative investments, to provide fiduciaries with greater long-term certainty and support broader access to diversified retirement solutions for American workers.
About the Institute for Portfolio Alternatives
The Institute for Portfolio Alternatives (IPA) serves as the leading industry voice for alternative investments. IPA is the preeminent trade organization championing alternatives—including private real estate, private credit, private equity, infrastructure, and other alternative assets. IPA hosts innovative events and conferences, offering world-class networking opportunities and educational resources, while also engaging in impactful advocacy at both federal and state levels.