WASHINGTON — A new bill from top Republicans on the Senate Banking Committee aims to open workplace retirement plans to a bigger range of investments, making it easier for 401(k) plans to diversify with holdings in private equity, hedge funds, real estate, cryptocurrencies and other alternative assets.
The panel’s top GOP member, Sen. Patrick J. Toomey of Pennsylvania, is leading Senate introduction of the draft bill, which comes as lawmakers work to move broad retirement savings legislation by the end of the year.
Toomey’s bill with Sen. Tim Scott, R-S.C., and House sponsor Rep. Peter Meijer, R-Mich., would clarify that a range of nontraditional investment options are among those that workplace plan managers can recommend, select or monitor without breaching their fiduciary obligations. The legislation would also clarify that expenses related to these investments, which in many cases charge higher fees than traditional mutual funds found in typical 401(k) plans, would be acceptable.
