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Private Equity in Republic Services 401(k) Plans: What Employees Should Know

Healthcare Provider Update: Healthcare Provider for Republic Services Republic Services offers health insurance benefits to its employees through various providers, including Aetna, UnitedHealthcare, and Cigna, depending on the location and specific plan options. These providers typically include various healthcare plans, encompassing options for medical, dental, and vision coverage. Overview of Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are poised to rise significantly, particularly affecting Republic Services employees. Record increases in premiums for Affordable Care Act (ACA) marketplace plans are anticipated, with some areas seeing hikes of over 60%. Many employers, including Republic Services, may respond by shifting more healthcare costs onto employees through higher deductibles or increased out-of-pocket expenses. As a result, employees should review their benefit choices carefully and consider strategies to mitigate rising costs, as the combination of expiring premium subsidies and escalating medical prices could lead to overwhelming financial burdens for many households. Click here to learn more

'Republic Services employees should carefully weigh transparency, costs, and flexibility when evaluating new 401(k) options, as thoughtful planning today can make a meaningful difference in retirement outcomes.' — Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Republic Services employees navigating evolving 401(k) choices should focus on understanding fees, liquidity, and long-term impact to help align their retirement strategies with their personal goals.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The opportunities and risks of private equity’s entry into 401(k) retirement plans.
The impact of fees, transparency, and liquidity on long-term retirement outcomes.
Key considerations Republic Services employees should weigh before adding private equity to their portfolios.

For several years, private equity firms have been seeking access to corporate retirement plans, which could affect the investment choices available in 401(k) accounts. Traditionally, these alternative investments have been limited to wealthy and institutional investors, who provide private equity firms with funds they can use to buy equity stakes in unlisted private companies. Under the Employee Retirement Income Security Act (ERISA), however, private equity funds have been excluded from most workplace retirement plans due to their high fees, limited liquidity, and opaque reporting requirements. ¹

New federal guidelines may be shifting this landscape. In an Executive Order issued in August 2025, the Trump administration supported access to alternative assets for 401(k) investors. ² While these changes may broaden diversification opportunities, they also raise questions about appropriateness, costs, and transparency for Republic Services employees planning their retirement. 'It's a historic change in access, but it's also a time that calls for caution,' said Neva Bradley of Wealth Enhancement. Although private equity may offer diversification benefits, a higher risk profile and less transparent pricing require careful consideration.

Juggling Promise and Risk

Private equity funds have historically delivered strong long-term returns, ³ but more recent conditions have narrowed the edge over traditional stock indexes. ⁴ Rising interest rates and volatile markets have made performance less consistent, which is an important factor for Republic Services workers evaluating retirement strategies. While opportunities for gains remain, the trade-off in volatility cannot be ignored.

Fee structures complicate matters further. Compared to low-cost index funds, private equity investments involve multiple layers of expenses. According to Bradley, 'the fee structures and volatility can significantly reduce those gains over time.' Republic Services employees should note that these fees can be ten times higher than standard 401(k) options, ⁵ which can diminish long-term compounding.

Challenges of Transparency

One of the largest differences between mutual funds and private equity is reporting. Mutual funds tend to publish daily prices and transparent performance updates, while private equity reports are typically quarterly and valuations are often based on estimates. ¹ This lack of standard benchmarks can make it difficult for even seasoned investors to evaluate performance consistently. For Republic Services participants, this means private equity may feel less straightforward than traditional investment choices.

The Cost Aspect

Private equity is also known for its high fees. Typical structures include a 1% to 2% annual management charge plus performance-based incentives, compared to about 0.25% for many mutual funds. ¹ Over decades, these higher costs compound, especially for retirement accounts where long-term growth is important. As Bradley points out, 'those costs compound over decades,' underscoring the need to weigh fees against potential returns.

Important Things to Consider for Retirement Planning

For Republic Services employees who may encounter private equity options in their 401(k), here are some key considerations:

Liquidity: Investments are often locked in for years with limited access.
Costs: Carefully review and compare fee structures.
Timeline: Private equity may lack the flexibility needed closer to retirement.
Diversification: If included, it should represent only a small portion of the portfolio.

Bradley summarized, 'Private equity is not a panacea, but it can contribute to complex portfolios.' Republic Services participants should evaluate transparency, fees, and personal risk tolerance before making decisions.

One notable development is that target-date funds that include private equity and private credit holdings have been shown to potentially boost retirement income by 5% to 15% over 40 years, ⁶ provided top-tier managers are selected. For Republic Services employees, this underscores both the opportunity and the complexity of integrating private equity into a long-term plan.