On March 31, 2026, the U.S. Department of Labor (DOL) released a Fact Sheet alongside a proposed rule intended to clarify fiduciary responsibilities and establish a process based safe harbor for selecting designated investment alternatives (DIAs) applicable to asset-allocation funds in defined contribution retirement plans. This is in response to an Executive Order directing the DOL to provide guidance for plans that offer alternative assets.

In general, a plan fiduciary must follow a prudent decision-making process that considers the relevant facts and circumstances that the fiduciary knows, or reasonably should know, are material to the DIA.

For purposes of the safe harbor, the proposed rule identifies six factors for fiduciaries to consider. Each factor may apply with varying weight depending on the facts and circumstances involved with respect to the particular DIA.

1. Evaluate performance by considering comparable investment alternatives to assess risk characteristics and anticipated risk-adjusted expected returns over an appropriate time horizon.
2. Assess fees by comparing the DIA with a reasonable number of similar investment alternatives to evaluate whether the DIA’s fees and expenses are appropriate.
3. Consider liquidity to determine whether the DIA has sufficient liquidity to meet the anticipated needs of the plan and its participants.
4. Assess valuation practices to determine whether the DIA can be valued accurately and on a timely basis, consistent with the operational needs of the plan.
5. Identify and use meaningful performance benchmarks that provide appropriate points of comparison, including an investment, strategy, index, or other benchmark with mandates, strategies, objectives, and risk characteristics similar to the DIA.
6. Evaluate complexity and fiduciary capacity by determining whether the fiduciary has the skills, knowledge, experience, and capacity to understand the DIA, or whether engaging another qualified individual is appropriate.

Comments on the proposed rule may be submitted through June 1, 2026. Electronic comments identified by RIN 1210-AC38 are encouraged through the Federal eRulemaking Portal.