Bloomberg Finds Signs of Fake Support for 401(k) Private Equity Plan

Bloomberg News reported that nearly 12,000 comments supporting a Labor Department proposal to allow retirement plans to invest in private equity and other alternatives show signs of being manufactured. One comment was filed under the name of Danna Oderman, who died in December, according to her son Heath Oderman. Bloomberg contacted dozens of commenters and found five cases where people said they or family members did not submit the supporting comments. Unlike the more than 30,000 opposing comments, the supportive form letters lacked personalization and contact details, according to Bloomberg.

The finding could complicate the rulemaking process for retirement plan advisors, who are watching whether the DOL finalizes a measure that would broaden plan access to private markets. Tainted public comment raises questions about the legitimacy of the record and may prompt scrutiny of the proposal's support base, a factor advisors should weigh as they assess the potential regulatory trajectory.