Key Points: To obtain the safe harbor for mutual funds for the liquidity factor for plan-level liquidity, fiduciaries may rely on SEC regulation of mutual funds. However, for other investments, such as CITs, there is a three-step process for obtaining the safe harbor. The DOL’s proposed regulation on selecting investments, including alternative assets, 2026-06178.pdf, identifies six factors that should be considered in the process of selecting any investments for participant-directed plans, such as 401(k) plans and private sector 403(b) plans. The six factors are: Performance, Fees, Liquidity, Valuation, Performance Benchmark, and Complexity. The proposal describes each of those factors and provides 20 examples of their application. In earlier posts, I covered four of the factors—Performance, Fees, Performance Benchmarks and Complexity, and their examples. In my last four articles, Alternative Assets (22), Alternative Assets (23), Alternative Assets (24), and Alternative Assets (25) I looked at the Liquidity factor and examples of the application of that factor.  This article continues the discussion of the third example. (3) Example. Plan-level liquidity— (i) Facts. Plan terminations, changes in plan recordkeepers or investment providers, and corporate sponsor mergers and acquisitions are examples of circumstances that may impose relatively short-term liquidity demands on a plan’s designated