Former DOL Leaders, Industry Groups Seek Extended Feedback for Alts Rule
As the Department of Labor publishes comments on its proposed rule on alternative investments in defined contribution plans, industry leaders want another 30 days added to the comment period.
Former Department of Labor officials and several trade associations published a letter sent to the DOL in which they requested a 30-day extension to the comment period for the recently proposed rule on the fiduciary duties in selecting designated investment alternatives.
The letter, dated April 21 and sent electronically to Assistant Secretary of Labor Daniel Aronowitz, who heads the Employee Benefits Security Administration, argued that the current June 1 deadline—allowing 60 days for comment—does not provide enough time for stakeholders to review and respond to the approximately 150-page rule. The groups warned the compressed timeline could violate the Administrative Procedures Act’s requirements for adequate notice and public comment.
Signatories included:
- Ali Khawar, former principal deputy assistant secretary of labor and acting EBSA head under former President Joe Biden;
- Phyllis Borzi, former assistant secretary of labor and EBSA head under former President Barack Obama;
- the Economic Policy Institute;
- the Pension Rights Center; and
- several other industry groups and legal scholars.
The DOL’s proposed rule provided a framework for fiduciaries to use to ensure they are acting as a prudent fiduciary when evaluating plan investments, including implementing alternative investments into plan investments such as target-date funds. The rule followed an August 2025 executive order by President Donald Trump that required the agency to issue guidance to reduce plan sponsors’ regulatory burden when adding private-market asset classes to defined contribution plan investment menus.
Signatories to the letter cited precedent for a 90-day comment period on major DOL rules, noting that past proposals received extended feedback windows and public hearings. The letter stated that since the DOL called the rule “historic,” the proposed rule should count as a “major” rule and receive a comment period of comparable length.
According to the groups, the current timeline does not give those not involved in the rulemaking process enough time to review the sweeping proposal, gather evidence and provide meaningful feedback.
As of today, more than 4,300 comments have been submitted on the rule in the nearly three weeks since the comment period opened. No comments had been published for public viewing until today.
A DOL spokesperson, writing in response to a previous PLANADVISER inquiry about the status of the submitted comments, stated today that: “The Employee Benefits Security Administration has begun publishing comments received on the Investment Selection Notice of Proposed Rulemaking. We will continue to post comments received on the proposal on a routine basis.”