By Hank Russell
U.S. Representative Andrew Garbarino (R-Patchogue) joined a group of fellow members of Congress in calling on Securities and Exchange Commission (SEC) Chairman Paul Atkins to follow the president’s executive order for those with 401(k)s and work with the Labor Department on the necessary guidance and reforms.
On August 7, President Donald Trump signed an executive order (EO) that allows 401(k) investors to access alternative assets. “Many wealthy Americans, and Government workers who participate in public pension plans, can invest in, or are the beneficiaries of investment in, a number of alternative assets,” the EO read. “Yet, while more than 90 million Americans participate in employer-sponsored defined-contribution plans, the vast majority of these investors do not have the opportunity to participate, either directly or through their retirement plans, in the potential growth and diversification opportunities associated with alternative asset investments.”
Trump blamed the lack of such an opportunity on trial lawyers, who, he said, have filed “burdensome lawsuits that seek to challenge reasonable decisions by loyal, regulated fiduciaries” and “denied millions of Americans opportunities to benefit from investment in alternative assets.”
“Such assets are an increasingly large portion of the portfolios of public pension and defined-benefit retirement plans and offer competitive returns along with diversification opportunities,” Trump wrote in his EO. “My Administration will relieve the regulatory burdens and litigation risk that impede American workers’ retirement accounts from achieving the competitive returns and asset diversification necessary to secure a dignified, comfortable retirement.”
Garbarino — along with House Financial Services Committee Chairman French Hill (R-Arkansas), House Capital Markets Subcommittee Chair Ann Wagner (R-Missouri), Frank Lucas (R-Oklahoma), Warren Davidson (R-Ohio), Marlin Stutzman (R-Indiana), Mike Lawler (R-Pearl River), Troy Downing (R-Montana), and Mike Haridopolos (R-Florida) — recently sent a letter to Atkins urging Atkins to support the President’s recent executive order to expand 401(k) options and give workers more choice in how they invest for retirement.
“The EO also directs the SEC to facilitate access to alternative assets for participant-directed defined contribution retirement savings plans by revising its own applicable regulations and guidance, specifically noting that such facilitation may include consideration of accredited investor and qualified purchaser status,” they wrote in the letter. “Given these directives, we encourage the SEC to provide swift assistance to the Secretary of Labor and to make any necessary revisions to its current regulations and guidance.”
In his support of the executive order, Garbarino said, “I believe that Americans deserve to have investment decisions in their own hands, and expanding options will help hardworking families build stronger financial futures.”