"Having surveyed the case law of our peer circuits, we find the following nonexhaustive list of factors useful to consider when determining whether a plan is a bonus payment plan: [1] whether the plan contemplates universal employee participation or imposes heightened eligibility requirements, [2] whether the plan is funded with money that would otherwise be immediately payable to the employee, [3] whether the plan is actually funded or involves phantom investments, [4] whether employees can unilaterally postpone payments until termination or beyond, [5] whether the plan is presented as a vehicle for obtaining retirement income, and [6] whether firm performance impacts plan payments.... We are convinced that the WealthChoice Award program comfortably qualifies as a bonus payment plan.... [We] affirm the district court's order granting summary judgment to Merrill Lynch because the WealthChoice Awards program does not fall within the protections of ERISA." [Milligan v. Merrill Lynch, No. 25-1385 (4th Cir. Apr. 17, 2026)] MORE >>
"While the majority of ESOP litigation in recent decades has dealt with operational issues, by far the most important and costly litigation has focused on prudence issues related to valuation. [FAB 2026-01] suggests that the EBSA will take a less aggressive stance on this going forward." MORE >>
"FAB 2026-01 reflects the DOL's position that fiduciary decisions should be firmly grounded in participants' financial interests. ESG-related considerations may raise loyalty concerns if they are not clearly tied to those interests.... EBSA's stated focus on process reinforces the importance of well-documented fiduciary decision making.... EBSA signaled that it will take into account ongoing efforts to establish acceptable ESOP valuation standards before advancing certain investigations." MORE >>
"If finalized, the proposed regulations could significantly alter how employer health plans evaluate PBM arrangements.... Plan fiduciaries would have greater access to data necessary to assess whether PBM compensation is reasonable and whether PBM arrangements present conflicts of interest.... The new disclosure regime may affect contract negotiations, particularly regarding rebate pass-through structures, spread pricing arrangements, and audit rights and reporting obligations.... Greater transparency could increase litigation risk where PBM compensation appears excessive or inconsistent with fiduciary duties under ERISA." MORE >>
"Sponsors of HRAs and other account-based plans, which are typically offered alongside major medical plans, will welcome the relief from providing burdensome and potentially confusing Part D creditable coverage notices. Sponsors of plans that remain subject to the disclosure requirements should use the 2027 parameters when determining whether their plans' prescription drug coverage is creditable for that year." MORE >>
"McKee confirms that there are limits to state PBM regulation. States may regulate PBM reimbursement rates and other costs, but when they: Require inclusion of all willing pharmacies in networks, or Prohibit differential copays and other steering mechanisms within networks, they are dictating ERISA plan structure and administration and risk preemption, at least as applied to self‑funded plans." [McKee Foods Corporation v. BFP Inc., No. 25-5416 (6th Cir. Apr. 7, 2026)] MORE >>
"New DOL guidance indicates that state laws relating to ESG investments would avoid ERISA preemption, creating additional legal risk to plans that offer ESG investments. [Technical Release 2026-01] sets forth the DOL's position that proxy advisors can be fiduciaries subject to ERISA. Management of shareholder rights exercises discretion over plan assets and meets ERISA's definition of a fiduciary. The DOL is following the DOL's 1975 five-part test for determining whether providing investment advice for a fee renders a person a fiduciary. The existence of a contract between a plan and a proxy advisory firm for investment advice services may be a relevant factor in determining whether this test is met." MORE >>
"While the proposed regulation was prompted by an Executive Order that focused on increasing access to investments in alternative assets within defined contribution retirement plans, it is applicable to almost all plan investment decisions. Plan fiduciaries need to be aware of the DOL's guidance in the proposed regulations regardless of whether alternative assets will be included in a plan's investment lineup.... The proposed regulation sets forth a process-driven, so-called 'safe harbor' that offers plan fiduciaries substantial -- but not absolute -- procedural defenses against litigation." MORE >>
" This settlement highlights the ongoing legal risks for plan sponsors and insurers that maintain broad exclusions for items or services closely associated with a disability. Although the settlement is not an admission of wrongdoing, it underscores that even seemingly neutral plan terms can be challenged as discriminatory under ACA Section 1557. Plan sponsors should review their plan documents for exclusions that may have a disproportionate impact on individuals with disabilities and consider the potential for proxy discrimination claims" MORE >>
"Employers don't lower healthcare costs by shifting them -- they lower costs by shaping how decisions get made. Healthcare costs will always be influenced by factors outside any single employer's control. But employers have more influence than they think, especially when they treat health benefits like a product for their employees and apply the same discipline they do to other major spends." MORE >>
"Sponsors are adopting more participant-friendly plan features and focusing on driving outcomes. According to industry surveys, most plans are not just meeting required changes but proactively enhancing plan design, offering higher matching contributions, automatic enrollment, and automatic escalation. Investment menus are trending toward low-cost index funds and collective investment trusts, which offer fee advantages and diversified options. The Department of Labor’s proposed safe harbor for evaluating alternative asset classes; including private equity and cryptocurrency; is asset neutral but demands rigorous process and documentation." MORE >>
"Strategic Roth conversions during the gap years before required minimum distributions (RMDs) begin at age 75 can keep Medicare premiums at the base rate of $202.90 per month for life, while staying above the $218,000 joint modified adjusted gross income threshold triggers IRMAA surcharges of up to $9,240 per year for couples. Retirees with large traditional 401(k) balances should execute conversions before RMDs begin using the two-year MAGI lookback window to avoid stacking conversions with future Social Security income, as SECURE 2.0 delays RMDs until age 75 for those born after 1959." MORE >>
"This year, 37% of the PBGH's members have issued a 'request for proposals' for medical benefits, meaning they're shopping between insurance providers. The last time the PBGH surveyed its members on this issue, in 2024, just 12% of employers were conducting a medical RFP." MORE >>
"[M]ost privately insured adults believed GLP-1 medications should be covered by health insurance, indicating broad support for coverage of these treatments among consumers. However, one-half did not know if they were covered by their plan. Among those who said they were covered, one-third reported that they were only covered for diabetes, one in 10 reported that they were only covered for obesity, and four in 10 reported that they were covered for both." MORE >>
"As an organization grows, the retirement plan it started with RARELY remains the same. Growth introduces a predictable shift in operational complexity, regulatory requirements, and fiduciary risk.... Across all three stages, the most important thing to understand is this: you can delegate the work of the plan, but you can never delegate the responsibility for its oversight." MORE >>
"Early indications point toward a $500 increase to the 401(k) contribution limit for employees next year—half the amount of the $1,000 boost given for 2026." MORE >>
"Insurers hoping for a reprieve from an out-of-network billing system largely favoring healthcare providers will likely be left wanting as federal policymakers sit on their hands and one large payer's bid to limit the claims faces an uphill battle, strategy firm Capstone concluded in a new report. A quarter-by-quarter rise in total payment dispute volumes is likely to continue due to the structural incentives for providers to engage in the process ... Such a trend would be slightly positive for hospitals, solidly beneficial for specialty providers and a roadblock for payers -- 'however, employers could face an additional burden,' they said." MORE >>
"Variable copay plans are some of the fastest growing commercial offerings by carriers. Metrics from insurance carriers show that members enrolled in these plans have cut their out-of-pocket costs by upwards of 50%, and that employers can achieve an estimated 7-12% savings. That’s a meaningful opportunity to improve health care affordability." MORE >>
"The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies decreased by three percent in March 2026 to 104 percent as a result of a decrease in equity returns partially offset by an increase in discount rates. As of March 31, 2026, the estimated aggregate surplus of $65 billion USD decreased by $46 billion USD compared to a surplus of $111 billion USD measured at the end of February[.]" MORE >>
"Alaska's government employees do not participate in Social Security, which leaves a significant gap in retirement benefits. Most of the state's government workers participate in the Alaska Supplemental Annuity Plan (SBS-AP), which more than replaces the benefits they would have received under Social Security. School employers, however, do not offer this benefit, leaving teachers at significant risk of inadequate savings for retirement. Senate Bill 55 (SB 55) aims to address this gap by making the same SBS plan available to teachers through school employers." MORE >>
"Trump Accounts are a new form of traditional individual retirement account (IRA) that the 2025 reconciliation law (P.L. 119-21) created for the benefit of children. Savers will be able to contribute to Trump Accounts starting on July 4, 2026.... Anyone can contribute to a child's Trump Account, although individual contributions during the growth period are not tax-deductible for either the contributor or the beneficiary. Employers can contribute up to $2,500 (adjusted for inflation after 2027) tax-free to the Trump Accounts of employees or their dependents (amount is per employee, per year)." MORE >>
"Aronowitz testified that fiduciaries are 'paralyzed with very rational fears' about litigation, and this 'stifles innovation in plan design' to the detriment of plan participants. Many of these lawsuits amount to 'unfair, hindsight second guessing,' he argued. He added that many fiduciary meetings focus on avoiding litigation rather than helping their participants." MORE >>
"You've planned for retirement -- saved diligently, mapped out your Social Security strategy and thought through market risks. But what happens if one day, you simply can't manage your money anymore? ... [1] Name a trusted contact on your financial accounts ... [2] Durable power of attorney ... [3] Health care power of attorney ... [4] HIPAA authorization ... [5] Last will and testament ... [6] Make sure your family knows your team." MORE >>
"The guidance ... clarifies that proxy advisers 'regularly fit the definition of functional fiduciaries' under ERISA if they exercise control over shareholder votes or provide investment advice for a fee to retirement plans. At the same time, the agency signaled support for certain state-level regulations of the industry, saying laws that require disclosures when advice is not based on financial considerations would 'generally not be preempted' by ERISA." MORE >>
"While the Proposed Regulation acknowledges the fiduciary duty to monitor DIAs at regular intervals, the DOL opted not to include a monitoring safe harbor ... The Proposed Regulation's safe harbor protects the selection of individual DIAs but does not extend to overall investment menu curation ... [T]his gap leaves fiduciaries without safe harbor protection for an actively litigated aspect of plan governance.... The Proposed Regulation expressly excludes brokerage windows, self-directed brokerage accounts, and similar arrangements from the definition of DIA." MORE >>
