In The Wall Street Journal, Joshua Lichtenstein Discusses Private Equity Investment in 401(k) Retirement Plans

In a Wall Street Journal article, ERISA and benefits partner Joshua Lichtenstein discussed issues impacting private equity investment in the $12 trillion market for 401(k) retirement plans.

Industry wants a regulatory “safe harbor” provision to reduce liability for companies that decide to offer private markets in their 401(k) plans. Others want changes to the Employee Retirement Income Security Act (ERISA), which governs retirement plans, that would make it harder to sue plan sponsors.

Joshua said these changes are not necessary, but would be helpful. He believes the main impediment to adding private funds is plan sponsors’ hesitancy to be the early movers, in part because of litigation risk, but he said this hesitancy will dissipate as momentum builds.