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Tuesday, October 13, 2026The Morning Brief →Sign in
The Opening BalanceThe Wrap

Proposed EBSA rule gives plan fiduciaries 20 process examples

Cerulli finds 39% of DC participants want guaranteed monthly payments, but income options need advice to drive adoption.

At a glance

25-second brief
  • The Labor Department's Employee Benefits Security Administration has proposed an Investment Selection Rule that would give plan fiduciaries 20 examples of a prudent selection process and six non-exhaustive factors.

  • Cerulli's U.S. Defined Contribution Distribution 2026 report finds 46% of participants want to withdraw money at any time, while 39% want a guaranteed monthly payment that continues after their savings run out.

  • A fiduciary who documents a selection consistent with the examples may have a clearer defense when choosing an annuity or lifetime-income allocation.

The Labor Department's Employee Benefits Security Administration has proposed an Investment Selection Rule that would give plan fiduciaries 20 examples of a prudent selection process and six non-exhaustive factors. Prompted by an August 2025 executive order, the proposal outlines process safe harbors for investment selection, according to coverage of EBSA's Aronowitz. It is proposed, not final, and does not bless any product.

Cerulli's U.S. Defined Contribution Distribution 2026 report finds 46% of participants want to withdraw money at any time, while 39% want a guaranteed monthly payment that continues after their savings run out. Cerulli concludes that defined contribution retirement income options need advice to drive adoption. Adding an income option requires an investment selection process, so the proposal's 20 examples could become the documented process that satisfies that duty.

A fiduciary who documents a selection consistent with the examples may have a clearer defense when choosing an annuity or lifetime-income allocation. But the proposal does not by itself provide participant-level advice; it only makes the plan sponsor's own selection easier to defend. Plan sponsors still must weigh participant liquidity, with 46% wanting anytime withdrawals, against guaranteed income, with 39% wanting monthly payments.

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Retirement Capital Daily coverage: EBSA Investment Selection Rule · Cerulli U.S. Defined Contribution Distribution 2026
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