Mark Boyko Featured in Bloomberg Law on Challenges to Private Equity in 401(k)s

Bailey Glasser partner Mark Boyko spoke with Bloomberg Law about the Trump administration’s recent executive order encouraging 401(k) plans to adopt alternative investments such as private equity and cryptocurrency. The order also signals an effort to limit fiduciary litigation, which for decades has protected employees and retirees from excessive fees and risky investments.

Despite hints at a new regulatory safe harbor, Mark emphasized that ERISA’s guarantee of a private right of action for plan participants cannot be overridden by agency guidance: “There’s no question this administration and the people it has put in at the DOL would like to make it more difficult for employees to protect their ERISA rights,” Mark said. “But the DOL can’t create a regulation that runs contrary to ERISA.”

Advocates warn that introducing opaque, high-fee, illiquid assets into retirement plans, combined with efforts to curb litigation, could threaten retirement security for millions of Americans.

“I don’t think this executive order is going to move the needle much,” Mark told Bloomberg Law, noting that ERISA requires plan investments to be prudent, regardless of any executive order.

For more insights and to read the full Bloomberg Law article visit here.

Learn more about Partner Mark Boyko here.