News Archive

"The DOL's recently proposed rule on alternative investments ignores the fact that ERISA section 404(a) requires a plan sponsor to conduct an independent investigation and evaluation on each investment option chosen for a 401k plan. However, the very nature of alternative investments typically involves a basic lack of transparency, which effectively prevents the verification by a plan sponsor required by ERISA 404(a)."  MORE >>

"The Sixth Circuit determined that the Tennessee any-willing-provider provision impermissibly restricted self-funded ERISA plans because by removing the plan sponsor's choice of pharmacy network providers, the law effectively made network decisions, which were 'a central matter of plan administration,' and required plans to be designed in a particular way.... The incentive and disincentive provisions were also held to be impermissible restrictions on self-funded ERISA plans by dictating key plan design and structure requirements[.]" [McKee Foods Corporation v. BFP Inc., No. 25-5416(6th Cir. Apr. 7, 2026)]  MORE >>

"This guide provides an overview of Non-Discrimination Testing [NDT], including what it is, which plans are affected, and key considerations for employers and HR professionals.... [1] What is NDT? ... [2] Why is NDT important for employers? ... [3] What does NDT evaluate? ... [4] Common Non-Discrimination Tests by plan type ... [5] How to prepare for an NDT ... [6] Timing for NDTs ... [7] What if a plan fails? ... [8] FAQs."  MORE >>

"Contributions that exceed the applicable annual limit – whether the basic limit or one of two catch-up contribution limits – must be corrected or they will not qualify for pretax treatment under Section 457(b). Excess contributions sometimes result from misapplication of the rules that govern the second type of catch-up contribution, which permits contributions over the regular limit during the three years preceding normal retirement age."  MORE >>

"If the provisions of the Final Rule are substantially similar to those in the Proposed Rule, it would raise the bar for demonstrating compliance with the HIPAA Security Rule. Under the proposed framework, incomplete documentation or informal practices will be harder to defend, particularly where an entity cannot show consistent, enterprise-wide governance. Organizations with mature, well-documented security programs will be better positioned to adapt, while others may need to reassess foundational compliance structures."  MORE >>

"[T]he deadline for employers covered by the San Francisco Health Care Security Ordinance (HCSO) to submit the required 2025 annual reporting form (ARF) is May 1, 2026. Employers that miss the deadline may face a $500 penalty for each quarter the reporting is delayed. The 2025 ARF, instructions and other resources are available on the city and county of San Francisco's website, along with ARF FAQs and information about the HCSO."  MORE >>

"With funded status holding at elevated levels, plan sponsors find themselves at a crossroads, deciding whether to transfer pension risk or continue managing assets in-house.... Planned uses of surplus assets varied across respondents ... After a decade-long decline, the expected return on assets (EROA) assumptions moved higher for the third consecutive year.... The average discount rate was 5.4% at the end of 2025, down 10 basis points from the prior year."  MORE >>

"The priorities of employers and their employees regarding workplace benefits have aligned, with a shared focus on higher pay, stronger retirement benefits and long-term financial security ... However, employees also reported a lack of clear communication from their companies about benefits. Most employees (88%) want benefits explained to them in plain language, instead of 'HR jargon' ... Employers also see the need for clarity, with 73% of employers saying employees repeatedly ask the same questions."  MORE >>

"Rev. Proc. 2026-3 says specifically that IRS will no longer issue PLRs on Section 420 transfers to a Section 401(h) retiree health account. However, the revenue procedure doesn't say IRS won't issue rulings on Section 420 transfers to a life insurance account. It's unclear whether IRS intended to limit its no-rule decision to transfers to a 401(h) account, and if so, what the agency's reason for doing so might be.... Instead of pursuing a Section 420 transfer, some employers might consider terminating their overfunded DB plans to take advantage of advantageous annuity pricing."  MORE >>

"[1] Supreme Court will consider 'meaningful benchmark' standard for ERISA imprudent-investment claims ... [2] Fourth Circuit Court of Appeals vacates district court decision certifying class ... [3] Third Circuit Court of Appeals affirms summary judgment, agreeing that defendants engaged in a prudent process ... [4] Recent developments in pension risk transfer cases ... [5] District court grants motion to dismiss claims challenging health plans' prescription drug costs with prejudice."

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"[The authors] explore the cost and benefit tradeoffs associated with pension unfreezing using a model calibrated to market data within a stochastic framework.... [T]he extent to which restarting DB pensions affects a firm's total pension cost depends on factors such as pension surplus magnitude, employee salaries, firm financial stability, and [PBGC] premiums. In particular, with a high funding surplus and elevated employee salaries, unfreezing a CB plan can yield greater cost efficiency for companies than pension risk transfer, especially in a high interest rate environment."  MORE >>

"Public pensions, normally the first to lead securities fraud cases, have been notably absent from the Apollo/Epstein stock drop litigation. That absence may reflect a deeper conflict: the same pensions that could sue Apollo for misleading disclosures are heavily invested in its private equity and private credit funds, where valuations remain opaque and untested."  MORE >>

"How do you prepare for thousands of dollars in upfront costs? One option is a health savings account, or HSA, which lets you save pretax money and is now available to people enrolled in lower-tier state and federal exchange plans, including bronze and catastrophic coverage. These plans generally have the lowest premiums on the exchange but the highest out-of-pocket costs when you need care."  MORE >>

"We need to make transparency non-negotiable. Full disclosure of administrative fees, rebates and spread pricing practices is essential to ensure PBM incentives align with the best interests of employers and their people. Furthermore, we need to remove members from the position of choosing between cost savings or coverage protection. We need to deliver both to health plan members. Can PBMs be a thing of the past? The question may not be whether PBMs will disappear entirely, but how their role will evolve or even begin to shrink."  MORE >>

"After decades of urging discipline, restraint, and delayed gratification, we're now concerned that retirees are too disciplined -- that they're depriving themselves of the very retirement they spent a lifetime preparing for.... The industry's current 'solution'? If they won't buy [an annuity] on their own -- and if plan fiduciaries are (still) hesitant to put it on the menu -- well, let's default them into it -- by embedding it in a target-date fund or managed account."  MORE >>

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"  MORE >>

"[I]ndividuals and businesses in the State of Hawaii affected by flooding and mudslides due to severe storms that began on March 10, 2026 ... now have until July 8, 2026, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have business in Hawaii, Honolulu, Kauai and Maui counties qualify for tax relief."  MORE >>

"71% of benefits teams report limited or no access to internal AI skills and resources, even when enterprise AI capabilities exist elsewhere. Risk concerns are most acute where financial and fiduciary exposure is highest, including data privacy, AI errors and compliance risk. Only 1% of employers report having a fully developed AI roadmap or governance framework specific to benefits. This creates a fundamental challenge: expectations for rapid acceleration are rising faster than the foundations required to scale."  MORE >>

"The DOL's proposal is much broader than anticipated and represents a new interpretation by the DOL of ERISA's duty of prudence.... Managers of alternative investments should consider the proposal's implications on fee transparency, liquidity management, and valuation processes.... The DOL anticipates issuing separate interpretive guidance relating to the duty to monitor. Public comments on the proposal are due on June 1, 2026[.]"  MORE >>

"[T]he Proposed Rule provides a welcome roadmap to plan fiduciaries responsible for selecting all of a plan's designated investment alternatives, not only those that relate to alternative assets. The regulation, when finalized, will allow fiduciaries to demonstrate their compliance with ERISA's fiduciary duty of prudence. However, it remains to be seen whether the Proposed Rule will deter ERISA litigation."  MORE >>

"[S]ection 1860D-13(b)(6)(B)(i) of the [Social Security Act] requires that 'entities that offer prescription drug coverage' must provide creditable coverage disclosures.... [CMS proposes] to revise Section 423.56(b)(3) so that account-based entities are not required to provide the creditable coverage disclosures.... [R]equiring account-based plans, such as HRAs, including ICHRAs, to determine if their coverage is creditable, and requiring them to report the creditable status of that coverage, unduly increases administrative burden on these entities ... After consideration of the comments received on this provision by a broad range of stakeholders, we are finalizing this policy as proposed without modification. "  MORE >>

"[U]nder the prior notice requirements, individuals could receive contradictory notices -- such as a non-creditable coverage notice from an HRA and a creditable coverage notice from a prescription drug plan -- leading to confusion about whether individuals were actually enrolled in creditable coverage. The Final Rule recognizes the difficulty in comparing the value of an HRA to the actuarial value of prescription drug coverage."  MORE >>

Slide Deck. "[1] Background -- executive order: Democratizing access to alternative assets for 401(k) investors ... [2] Summary of proposed rule: Fiduciary duties in selecting designated investment alternatives ... [3] Safe harbor factors when selecting designated investment alternative ... [4] Specific requests for comments within 60 Days ... [5] Topics explicitly not addressed ... [6] Considerations for plan fiduciaries."  MORE >>

"The Ninth Circuit recently issued a pair of decisions clarifying how the rules governing withdrawal liability apply to employers in certain industries. In [one case] the Court held that an employer did not withdraw from a multiemployer pension plan, and thus did not owe withdrawal liability, because the employer's asbestos abatement work qualified for the 'building and construction industry' exemption. And in [a second decision], the Court held that the plan primarily covered employees in the entertainment industry because the majority of employees in the plan performed at least some entertainment-related work." 
[Walker Speciality Constr. Inc. v. Bd. of Trustees of the Constr. Ind. and Lab. Jt. Pension Trust for S. Nev., No. 24-1560 (9th Cir. Jan. 5, 2026); Nevada Resort Ass'n-Int'l Alliance of Theatrical Stage Emps. & Moving Picture Mach. Operators of the US & Canada Loc. 720 Pension Tr. v. JB Viva Vegas, LP, No. 24-2791 (9th Cir. Jan. 6, 2026)]  MORE >>

"The ESI settlement creates new options for plan sponsors, but few protections apply automatically without proactive action. With the CAA 2026, transparency is expanding meaningfully, but important PBM revenue streams remain partially hidden. The DOL's Proposed Rule increases fiduciary accountability by tying PBM compensation transparency directly to ERISA oversight. Turning transparency into value will require active governance and independent pharmacy benefit expertise."  MORE >>