What happened: In August, President Donald Trump signed an Executive Order directing the Department of Labor to provide regulatory safeguards that would allow private sector employers to offer 401(k) plans with expanded investment options for employees. This will ultimately give some 90 million Americans access to higher-return alternatives historically reserved for public pension funds and the wealthy. 

Tell me more: Trump’s Executive Order could increase lifetime retirement income by thousands of dollars annually, while also boosting U.S. GDP by an estimated $35 billion.

Worth noting: Democrat-aligned trial attorneys remain a major obstacle, filing frivolous class action lawsuits against employers who try to innovate in retirement plan design. These lawsuits have created a climate of fear that discourages businesses from offering diversified, high-return portfolios to their employees. 

• The Department of Labor may issue a formal rulemaking to address this predatory behavior.

TLR Thoughts: Expanding 401(k) access to alternative investments is a smart move for working Americans, but protecting small businesses from abusive litigation remains critical. Without legal safeguards, trial lawyers will continue to enrich themselves while retirees get peanuts.

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