Attorney General Jay Jones Joins Coalition Opposing Plan to Weaken Federal Protections for Retirement Investments

ATTORNEY GENERAL JAY JONES JOINS COALITION OPPOSING PLAN TO WEAKEN FEDERAL PROTECTIONS FOR RETIREMENT INVESTMENTS 
Proposal Would Open the Door to Risky 401(k) Investments, Endangering Virginians’ Futures 

RICHMOND, Va. – Attorney General Jay Jones joined a coalition of 24 states in opposing a proposal from the Trump administration that would put the retirement savings of millions of Americans at risk.  

In their comment letter submitted to the U.S. Department of Labor today, the coalition argues that the department’s proposed rule would harm workers and retirees by increasing their exposure to risky, volatile alternative assets, which are often less understood by investors and could result in catastrophic financial losses. The Department of Labor estimates that under the proposed rule, about 4.5 million workers and retirees and $178 billion would go into funds with riskier investments each year. 

“From record high gas prices to tariffs, at the hands of the current presidential administration, Virginians are rightfully worrying about their financial security. This proposal will jeopardize their financial future further, by creating a loophole for fiduciaries to invest the money of hardworking Virginians in knowingly risky assets without strong oversight,” said Attorney General Jay Jones. “This office will continue to use every legal resource available to fight for a stable, prosperous financial future for the people of the Commonwealth, and hold those who stand to profit from those imprudent investments accountable.”  

Congress set a high standard of prudence for the managers, known as fiduciaries, of 401(k) plans governed by the Employee Retirement Income Security Act of 1974. The standard requires them to choose and monitor investment options with care to ensure the financial soundness of the plans workers rely on for a secure retirement. For decades, courts have confirmed that fiduciaries must be both careful and skillful when managing workers’ savings. 

If fiduciaries do not meet the standard set by law, they could face government enforcement or lawsuits from the workers and retirees who lose money. Congress gave workers and retirees the power to bring those lawsuits to hold fiduciaries accountable and deter them from taking improper or needless risks when choosing investments. The department’s proposed rule would create a loophole that tries to stop courts from evaluating whether fiduciaries were careful and skillful when choosing investments for workers’ retirement savings. The department has acknowledged that the proposed rule change would likely cause fiduciaries to move many Americans’ retirement savings out of stocks and bonds and into riskier options.  

The coalition argues that the proposed rule would shift financial risk to workers and away from fiduciaries, and, in doing so, would harm states and their residents. The letter notes that the loss of retirement income could force workers to continue employment beyond retirement age, potentially harming their health and safety. Seniors who lose portions of their retirement savings would also increasingly have to rely on federal and state public assistance programs.  

Joining Attorney General Jones in submitting the comment letter are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin, along with the Pennsylvania Department of Labor and Industry. 

Published on: June 1, 2026

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