U.S. Senator Bill Cassidy, chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, has expressed support for President Trump’s Executive Order aimed at improving American workers’ access to alternative retirement investments. The order seeks to provide regulatory clarity for employers and greater flexibility for employees saving for retirement.
Cassidy highlighted the need for clear rules that allow employers to offer new investment options while safeguarding workers’ ability to manage their savings flexibly. “Employers should have the regulatory clarity they need to offer these new investment options to workers while protecting a workers’ ability to invest their savings with flexibility,” wrote Dr. Cassidy. “While previous administrations have sought to promulgate overly restrictive regulations or misuse informal guidance processes, President Trump’s recent Executive Order opens the opportunity for concrete rulemaking and promotes more fruitful retirements for Americans.”
In a letter addressed to Secretary Chavez-DeRemer of the Department of Labor, Cassidy endorsed the executive order titled “Democratizing Access to Alternative Assets for 401(k) Investors.” He noted that while defined benefit plans in government, unions, and private sectors have long benefited from alternative assets, many Americans have not had access due to what he called outdated regulations.
Cassidy stated that as more workers gain access to alternative assets through their 401(k)s, it is important they can consult with employers and retirement professionals about these investments. He also welcomed President Trump’s move to reconsider the previous administration's Retirement Security Rule, which he described as burdensome.
He emphasized that as the Department of Labor develops guidelines or safe harbors for such investments, workers must be able to make timely decisions based on their needs. Cassidy pointed out that innovative financial products now exist that address concerns like illiquidity and infrequent valuation while allowing participation in alternative assets.
The senator also stressed the importance of prudent investment oversight by employers under federal law. “Workers should also be able to confidently invest in alternative assets knowing that their savings are not endangered in overly speculative or risky investments,” Cassidy wrote. He referenced Congress’s intent in enacting the Employee Retirement Income Security Act in 1974—that employers provide carefully considered retirement options—and urged continued diligence by plan sponsors.
Cassidy concluded his letter by expressing willingness to work with the Department of Labor on implementing the executive order: “I look forward to collaborating with the Department of Labor to bolster Americans’ savings by implementing President Trump’s executive order.” He underscored the growing prevalence of defined contribution plans like 401(k)s and called for a balance between flexibility and prudence so workers can retire comfortably.
For further information or updates from HELP Republicans, readers are directed to visit their official website or Twitter account @GOPHELP.
