No images? Click here [link removed]

FOR IMMEDIATE RELEASE CONTACT: Brooke Armour [mailto:[email protected]]

August 6th, 2025 (916) 553-4093

CBRT: President Trump's Executive Order Opening 401(k)s to Private Markets Will Level the Playing Field for Working Families

SACRAMENTO, CA – Today, the California Business Roundtable indicated their support to expand access to private investments in 401(k) accounts.

The president’s order directs the Department of Labor and the Securities and Exchange Commission to issue guidance to employers and U.S. retirement plan administrators on including private assets in 401(k) retirement plans. This regulatory clarity removes a key barrier that kept many California employers from offering a broader range of investment options to their workers. It will strengthen California’s retirement system, which operates in a high-cost-of-living environment where working families deserve every advantage to build wealth.

“Expanding access to private markets will help Californians build wealth and successfully save for a comfortable retirement,” said Rob Lapsley, President of the California Business Roundtable. “All workers, not just the wealthy, deserve to have access to wealth-building tools. This executive order democratizes the same investment opportunities for working families that have long been available to institutional investors and government pension recipients.”

For too long, unclear regulations have stopped California employers from offering alternative investments, creating a two-tier system where only wealthy investors and public pension holders could access higher-return private markets. President Trump’s executive order removes that uncertainty, empowering employers to offer stronger financial tools while reducing the litigation risk that has plagued retirement plan sponsors.

Performance data from leading financial institutions supports President Trump's decision. Private equity has consistently outperformed public markets over the long term. Recent studies show that private equity has returned an average of 10.7% annually, compared to the public benchmark of only 6.6%. While public pension funds have raised their investments in alternatives from 10% to 25%, most working Americans still can’t access these higher returns because of outdated rules.

The order also arrives as California workers face mounting challenges to their retirement security. With Baby Boomers turning 65 at record rates and Social Security projected to be unable to meet its obligations by 2033, strong 401(k) performance is more important than ever. Defined contribution plans now outnumber defined benefit plans by a ratio of eight to one, making private market access essential for achieving retirement adequacy.

CBRT urges policymakers to build on this momentum by updating other outdated rules that block financial innovation. California's economic competitiveness depends on ensuring our workforce has access to the same wealth-building opportunities available to institutional investors, and this executive order represents a major step toward that goal.

# # #

California Business Roundtable

1301 I Street, Sacramento, CA 95814

916.553.4093

[[link removed]]

Preferences [link removed] | Unsubscribe [link removed]