Key Takeaways
- • The U.S. Supreme Court agreed on January 16, 2026, to hear Anderson v. Intel Corp., a landmark case challenging the fiduciary standards for alternative investments in 401(k) plans, with the Department of Labor filing an amicus brief supporting Intel's position on benchmark standards.
- • The DOL submitted a proposed regulation on January 13, 2026, entitled "Fiduciary Duties in Selecting Designated Investment Alternatives" ahead of schedule to implement President Trump's Executive Order expanding alternative investment options in ERISA-governed defined contribution plans.
- • Intel's defense centers on requiring "apples-to-apples" benchmark comparisons with the same asset allocation as the fund's target allocation, arguing this standard has been applied inconsistently across federal circuits and sets too high a bar for workers challenging alternative investment selections.
- • The case outcome is expected to reshape fiduciary standards for alternative investments in 401(k) plans, reduce litigation risk for plan sponsors, and accelerate adoption of alternative assets as 401(k) investment options.
- • Employer groups have backed Intel's position in the Supreme Court brief, signaling broad support among plan sponsors for clarified benchmark standards that would facilitate alternative investment offerings.
Summary
The U.S. Supreme Court's January 16, 2026, decision to hear Anderson v. Intel Corp. represents a pivotal moment for alternative investments in defined contribution plans. The case challenges the legal standard for evaluating whether benchmark comparisons used to defend alternative investment selections in 401(k) plans meet fiduciary requirements under ERISA. Two former Intel employees initiated the appeal, which was heard by the Ninth Circuit Court of Appeals before reaching the nation's highest court.
Intel's defense strategy emphasizes the need for "meaningful benchmarks" that employ "apples-to-apples" comparisons. Specifically, Intel argues that benchmarks should use the same asset allocation as the fund's target allocation and rely on index returns for comparison purposes. The company contends that the current legal standard has been applied inconsistently across federal circuits, creating uncertainty for plan sponsors and an unnecessarily high bar for workers challenging alternative investment allocations.
The Department of Labor's involvement adds significant weight to the case. On January 13, 2026—three weeks before the Supreme Court agreed to hear the appeal—the DOL submitted a proposed regulation to the Office of Management and Budget titled "Fiduciary Duties in Selecting Designated Investment Alternatives." This regulation implements President Trump's Executive Order on expanding alternative investments in ERISA-governed plans, and notably, the submission arrived ahead of the 180-day deadline originally mandated by the Order. The DOL's amicus brief in support of Intel signals executive branch alignment with clarified fiduciary standards that would facilitate alternative investment adoption.
The convergence of the Supreme Court review and DOL rulemaking is expected to accelerate market clarity and adoption. A favorable Supreme Court ruling combined with regulatory guidance could significantly reshape how plan sponsors evaluate and select alternative investments, reduce litigation exposure for fiduciaries, and create tangible opportunities for asset managers to develop 401(k) alternative products. Industry observers emphasize that this moment is critical for asset managers to prepare product strategies and communications as plan sponsors begin actively exploring alternatives in the coming months.
Employer groups have also filed supporting briefs with the Supreme Court backing Intel's position, reflecting broad plan sponsor interest in achieving consistent, workable fiduciary standards for alternative investments in defined contribution plans.
Intel's defense strategy emphasizes the need for "meaningful benchmarks" that employ "apples-to-apples" comparisons. Specifically, Intel argues that benchmarks should use the same asset allocation as the fund's target allocation and rely on index returns for comparison purposes. The company contends that the current legal standard has been applied inconsistently across federal circuits, creating uncertainty for plan sponsors and an unnecessarily high bar for workers challenging alternative investment allocations.
The Department of Labor's involvement adds significant weight to the case. On January 13, 2026—three weeks before the Supreme Court agreed to hear the appeal—the DOL submitted a proposed regulation to the Office of Management and Budget titled "Fiduciary Duties in Selecting Designated Investment Alternatives." This regulation implements President Trump's Executive Order on expanding alternative investments in ERISA-governed plans, and notably, the submission arrived ahead of the 180-day deadline originally mandated by the Order. The DOL's amicus brief in support of Intel signals executive branch alignment with clarified fiduciary standards that would facilitate alternative investment adoption.
The convergence of the Supreme Court review and DOL rulemaking is expected to accelerate market clarity and adoption. A favorable Supreme Court ruling combined with regulatory guidance could significantly reshape how plan sponsors evaluate and select alternative investments, reduce litigation exposure for fiduciaries, and create tangible opportunities for asset managers to develop 401(k) alternative products. Industry observers emphasize that this moment is critical for asset managers to prepare product strategies and communications as plan sponsors begin actively exploring alternatives in the coming months.
Employer groups have also filed supporting briefs with the Supreme Court backing Intel's position, reflecting broad plan sponsor interest in achieving consistent, workable fiduciary standards for alternative investments in defined contribution plans.
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