In his first interview since taking over the Employee Benefits Security Administration, Aronowitz said excessive lawsuits had distorted fiduciary decision-making for retirement plans.
He said the proposed safe harbor would help plan fiduciaries consider alternative investments without fear of litigation, part of a broader shift in Labor Department enforcement priorities.
The move comes as private credit fundraising remains strong even as returns slip, underscoring debate over whether retirement plans should gain clearer access to alternative assets.
The DOL aims to end 'litigation abuse' in retirement plans. Will this truly fix the system or simply create new loopholes?
Will adding complex alternative assets to 401(k)s truly democratize wealth, or just introduce risks that savers aren't prepared for?
A plan could inject $178 billion into alternative investments. What unintended consequences could this massive capital shift create for the economy?