"[Advisory Opinion 2025-04A provides that] a lifetime income product could qualify as a QDIA if it satisfies the transferability requirements and other provisions of the regulation.... [T]he DOL outlines the two safe harbors available to fiduciaries when selecting annuity providers for defined contribution plans ... [If] a fiduciary complies with the requirement of one of these safe harbors in selecting (and monitoring) the insurers selected to provide lifetime income options, it will satisfy its fiduciary obligations under ERISA." MORE >>
"This article is intended to explain how the updated maximum dollar limits work across multiple defined contribution retirement plans. In addition to contribution limits, the IRS recently updated the 401(a)(17) compensation limit ($360,000 for 2026)." MORE >>
33 pages. Topics: [1] Washington update: One Big Beautiful Bill; [2] Federal legislation and regulations; [3] Health benefits litigation update; [4] Prescription drugs; [5] Preventive services and fertility benefits; [6] Year-end reminders. MORE >>
"This court's determination that offering an actively managed fund instead of a low-cost index fund is not an automatic breach of the duty of prudence reiterates the idea that fair and accurate comparison is required for investment option challenges, and the goal is not perfection, but establishing and following a process to reach prudent and reasonable investment decisions. The ruling also acknowledges that a fiduciary's duties regarding investments may be fulfilled even absent an investment policy statement[.]" [Iannone v. AutoZone, Inc., No. 19-2779 (W.D. Tenn. Sep. 30, 2025)] MORE >>
"[T]he Emergency Savings Enhancement Act would double the maximum account limit of pension-linked emergency savings accounts (PLESA) to $5,000 and would reduce their administrative burden. PLESAs, sometimes called side-car accounts, were created by the SECURE 2.0 Act. Setting the limit higher than $2,500 for PLESA balances was debated during the SECURE 2.0 negotiations." MORE >>
"Examples of gag clauses include a requirement in a PBM contract that prevents the disclosure of lower-priced alternative prescription medications. Such a requirement would constitute a gag clause, since it could prohibit disclosure of pricing information or disclosure of the fact that a medication may be cheaper without insurance. A gag clause would also include a provision in a provider contract with a plan that maintains the confidentiality of negotiated rates or quality metrics." MORE >>
"There are a variety of mistaken elections that can occur each year. They may be made by employees out of confusion, the result of bad programming in the enrollment platform, or mistaken paper election.... [This article discusses] the parameters of correcting cafeteria plan elections." MORE >>
"With regulatory barriers to private investments in 401(k) plans being lowered, advisors are beginning to gauge risks and plot paths to navigate the complexities, fee structures and potential fiduciary liabilities before moving down that road." MORE >>
"[T]he IRIC predicts that retirement industry professionals, including consultants and advisors, will incorporate standardized fiduciary evaluation frameworks to simplify adoption and help sponsors assess and compare options.... The IRIC also forecasts improvements in the participant experience with new interactions and transactions for in-plan retirement income options." MORE >>
"While the FAQs do not change any existing rules governing fertility-related benefits, and from a practical perspective will not likely change how most employers currently structure these benefits, they do illustrate the increasing attention these benefits are attracting. Presently, nearly half of states have passed fertility related insurance coverage laws, and the federal government has expressed its commitment to expanding access to affordable fertility treatments" MORE >>
"Minneapolis and Saint Paul recently amended their Earned Sick and Safe Time ordinances to align more closely with Minnesota's statewide law. Employees are covered under the city ordinances if they are expected to work at least 80 hours in a year within the respective city's limits." MORE >>
"The Life Insurance and Annuities Committee, an arm of the [NAIC], plans to consider adoption of an Annuity Best Interest Regulatory Guidance and Considerations document [on December 9] ... Some state regulators want the guidance to help states ensure that annuity sellers treat clients well. Groups for annuity issuers and sellers want the guidance to reduce the odds that annuity sellers will have to cope with state and federal regulation at the same time." MORE >>
"[The amended regulations] take effect on December 11, 2025 ... [and] will significantly impact many employers set to comply with the new program on January 1, 2026.... [T]he amended regulations [1] alter the definition of the 'application year,' which is used to determine benefit entitlement.... [2] modify the definition of 'employee.' ... [3] address the contributions that can be deducted from employee pay in certain circumstances.... [4] provide guidance for self-insured employers, particularly regarding requirements for claim reserve accounts, and modify information collected by the state." MORE >>
"[T]he court found that the connection between what plan participants were required to pay in contributions and out-of-pocket costs and the fees the plans were required to pay the PBM was too tenuous. The court cited to J&J's discretion in setting participant contribution rates, which it stated can be influenced by multiple factors unrelated to amounts paid in connection with the prescription drug benefits." [Lewandowski v. Johnson & Johnson, No. 24-0671 (D.N.J. Nov. 26, 2025)] MORE >>
"Among those with a new 401(k) plan loan, health care spending was the most likely to have increased, as 47.6 percent of households where a participant took a loan saw their spending on health care increase by more than 10 percent in the year they took the loan. This was followed by travel (21.7 percent), entertainment (20.2 percent), and non-specified cash spending (20.0 percent)." MORE >>
"Just a few weeks after CVS Pharmacy Inc. agreed to pay $18.2 million dollars to resolve alleged violations of the federal and California False Claims Acts ... CVS has once again agreed to pay almost $37.76 million dollars to settle another civil fraud case brought against it by the Department of Justice.... In the stipulation and order of settlement and dismissal, CVS admits, acknowledges and accepts responsibility for being overpaid by government healthcare programs, over dispensing and refilling prescriptions too soon." MORE >>
"A senior account manager took eight and a half days of paid time off to care for a seriously ill daughter and then her mother. She later claimed the company interfered with and retaliated against her Family and Medical Leave Act (FMLA) rights. The Second Circuit affirmed summary judgment for the employer because performance issues were documented before the leave, every leave request was approved, and there was no proof that criticism or the termination decision was tied to her time off." [Haran v. Orange Business Services, Inc., No. 24-2312 (2d Cir. Nov. 25, 2025)] MORE >>
"[T]he court noted that an employee's subjective feelings are not in themselves enough to establish a valid claim.... The Second Circuit panel ... found that the employer's failure to provide the notices did not support Patti's interference claim. No prejudice.... The employer said that Patti was doing a lousy job with U.S. clients. Patti disagreed, and said that her contrary opinion was enough to get her FMLA retaliation claim to a jury. But the court correctly noted that her personal opinion was not relevant.... [T]he employer's performance-related feedback had been consistent the whole time -- before, during, and after the FMLA leave." [Haran v. Orange Business Services, Inc., No. 24-2312 (2d Cir. Nov. 25, 2025)] MORE >>
"Institutional Shareholder Services (ISS) has released its benchmark voting policy updates for 2026, with notable shifts in board accountability for capital structures and responsiveness, executive compensation assessments, evaluation of equity plans, and ISS's approach to key environmental and social shareholder proposal topics. The updated policies will generally apply to shareholder meetings taking place after February 1, 2026." MORE >>
"[Some] are pitching the accounts as an alternative to expiring enhanced federal subsidies that have lowered insurance premium payments for most Americans with [ACA] coverage. But legal limits on how HSAs can and can't be used are prompting doubts that expanding their use would benefit the predominantly low-income people who rely on ACA plans.... One group that would almost certainly benefit: a slew of companies selling expensive wellness items that can be purchased with tax-free dollars from the accounts." MORE >>
"[M]aking patients bear more of their costs out of pocket is a bad way to reduce wasteful health-care spending. It does more to inhibit access to care than to steer patients to cheaper sources of treatment. This is because health-care spending is highly concentrated among the seriously ill, for whom additional expenditures greatly exceed any realistic deductibles. Legislators should instead focus on letting Americans purchase more affordable insurance plans that are better focused on their health needs." MORE >>
"[1] Changes in requirements that generally would require an amendment to most plans or to most plans of the type affected by the change and do not relate to optional plan provisions previously adopted: Modification of required minimum distribution rules ... [2] Changes in requirements that may require an amendment because of an unusual plan provision in a particular plan and do not relate to optional plan provisions previously adopted: Reform of partnership and trust attribution rules ... [3] Changes in requirements that relate to optional plan provisions previously adopted: None." MORE >>
"This report provides [IRS] data on contributions to IRAs in 2022. Congress has an interest in contribution data because tax expenditures for retirement plans (estimated to be $35.1 billion for IRAs and $152.2 billion for DC plans in FY2025) are one of the largest categories of revenue losses attributable to provisions in the tax code." [R48051 updated Dec. 3, 2025] MORE >>
Dec. 2025. "Use Form 4547 to make the election to establish an initial Trump account for the exclusive benefit of a child who is eligible for a Trump account. Also use Form 4547 to make an election for a $1,000 pilot program contribution from the U.S. Treasury to a child's Trump account if they are eligible for the contribution." [Also available: Draft IRS Form 4547: Trump Account Election(s)] MORE >>
"While there are still several unanswered questions regarding implementation and administration of Trump accounts, the guidance provides employers more clarity on how they can include Trump account contributions among the benefits offered to employees. The IRS included a comment request in Notice 2025-68 on several issues regarding these accounts, and ... additional guidance from IRS [is expected]." MORE >>
