My earlier posts discussed four of the six Factors in the DOL’s proposed regulation that apply to most investments in participant-directed private sector plans. This article discusses the second example of the application of the Liquidity Factor, which is one of the two Factors (along with the Valuation Factor) that specifically target illiquid, hard-to-value investments, such as private funds. As background, 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 two articles, Alternative Assets (22) and Alternative Assets (23), I looked at the Liquidity factor and the first example of that factor.  This article looks at the second example: (2) Example. Participant level liquidity; lifetime income— (i) Facts. The investment policy statement of a participant-directed individual account plan calls for lifetime income options on the plan