"[At] one level, this is another excessive fee and fiduciary breach case involving a large defined contribution plan. But the complaint also reflects the continued expansion of ERISA litigation theories beyond simply whether fees were 'too high' -- and the 93-page filing further points to: how expenses were allocated, whether forfeitures were used appropriately, indirect compensation structures, disclosure practices, vendor oversight, competitive bidding processes, and fiduciary governance itself.... [T]he requested remedies include disgorgement, surcharge, accounting, restoration of losses, fiduciary removal, injunctive relief, statutory penalties, attorneys' fees, and other equitable relief." [Fuller v. Ford Motor Co., No. 26-11541 (E.D. Mich. complaint filed May 8, 2026)] MORE >>
"This report aims to provide the 401(k) industry (and those who are serviced by that industry) with a meaningful and objective set of performance-based benchmarks. It examines the overall performance of 401(k) plans for 27 industry verticals across 8 different performance metrics. The results are then organized by size of firm to allow for easy and meaningful comparisons." MORE >>
"6 in 10 [small and medium-sized business (SMB)] employers report paying fees they didn’t anticipate when they signed up for a plan - including charges for audits, ERISA counsel, and compliance filings. 73% reported that these fees drove up the overall cost of their benefits program. As a consequence of extra costs, employers terminated their plan (13%), lowered matching contributions (26%), or cut benefits to compensate (31%). 64% said participants withdrew from the plan because they found transaction fees unaffordable, unexpected, or confusing." MORE >>
"Currently, about half of plan sponsors have adopted at least one of the distribution provisions while 37 percent have adopted the natural disaster provision and 30 percent have adopted the domestic violence provision. We also asked why they are or are not adding these provisions and the answers range from 401(k) administration is complicated enough as it is, concerns about abuse, to participants requesting them. One employer added four but limited use to three per year, which is an interesting way to balance the flexibility in offering options with limiting abuse and leakage." MORE >>
"[T]here are some situations where contributing to a 401(k) retirement account might not be a smart money move for seniors. This usually occurs after workers have accumulated a large portfolio and are maximizing their tax strategy in retirement. Many people may also need to stop maxing out a 401(k) when they have competing financial priorities." MORE >>
"[Of] the 80% of respondents who use automatic enrollment, 20% are re-enrolling participants. The approaches used vary from periodically re-enrolling non-participants to auto-escalating all employees by one percent each year (including those with a 0% rate) and requiring opt-out of the escalation annually. Reasons for not re-enrolling include already high participation rates that don't need it, concern about it affecting employee trust and culture, and complexity." MORE >>
"SECURE Act 2.0 modified [the] rule for an employer that replaces its SIMPLE IRA plan mid-year with a safe harbor 401(k). In that specific scenario, the SIMPLE IRA owner can roll over the account to the newly established safe harbor 401(k) without triggering the early distribution penalty, regardless of the two-year waiting period. Distribution restrictions in the new plan apply to the rollover, however." MORE >>
"The rule gives plan sponsors a defensible process framework they've never had before, brings real scrutiny to fee practices that have long harmed participants, and could help fiduciaries make better-documented decisions regardless of where they land on the active-versus-passive spectrum.... Key provisions are either unenforceable from a participant's perspective, built on a fee disclosure framework that remains broken, or unlikely to produce real-world change despite the regulatory machinery behind them." MORE >>
"By doing nothing more than signing termination amendments, JJDD has created several problems. Mr. Icicle is particularly alarmed that they did not amend the cash balance plan to freeze benefits or tell participants about the termination, which means benefits have been accruing to plan participants all this time.... [W]hile the 401(k) plan does not suffer from the benefit accrual problem (and there was no obligation to provide participant notice), it has issues of its own.... And, not incidentally, no Forms 5500 had been filed for the two plans since they were 'terminated.' " 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 >>
"[Y]our 401(k) plan may permit suspension of loan repayments for the entire period of the military leave even if that period exceeds one year, and the term of the loan may be extended to the maximum permissible term of the loan plus the period of military leave." MORE >>
"As employers prepare for a fresh crop of summer interns, they should review their 401(k) plan documents to determine whether summer interns would be eligible to participate in the plan. Often, employers incorrectly assume that summer interns are excluded, which can result in costly plan corrections." MORE >>
"[This] limits forecast is projected using two assumption sets. One is based on the current trailing 12 months of CPI and the second assumes that year-to-date CPI (since September 30, 2025) will continue to increase each month through September 30, 2026, by an estimated 25 basis points (3.0% annual).... Projecting monthly increases of 0.25% through September 2026 results in an annual increase of about 3.2% for our 6-month actual/6-month forecast projection." 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 >>
21 pages. "At year-end 2023, 97% of participants held some portion of their assets in equities ... This compares with 87% of participants at year-end 2007.... On average, younger 401(k) plan participants allocate a higher share of their assets to equities than older participants.... At year-end 2023, 77% of 401(k) plan participants were in plans allowing loans, but only 15% of participants who were eligible for loans had loans outstanding against their 401(k) plan accounts." [Also available: Supplemental Tables (XLSX)] MORE >>
"Participants often work for multiple participating employers during a year. As a result, no single employer may have complete visibility into an individual's prior-year wages. In addition, coordination across multiple payroll and recordkeeping systems can make compliance significantly more complicated.... Although the relief provides additional time, implementation will require careful coordination among boards of trustees, plan professionals, participating employers, payroll providers, and recordkeepers." MORE >>
"Like the documentation that was previously required for hardship distributions, the documentation needed to substantiate principal residence loans is highly variable, non- standardized, and often difficult to collect and submit in a timely fashion.... [U]pdated guidance on principal residence loans would help to reduce administrative burdens and costs for plans and participants ... This could also reduce leakage, since a participant who cannot take a plan loan expeditiously may instead take a withdrawal[.]" MORE >>
"[1] Automation is helpful -- but it's not a substitute for human oversight and alignment with the plan document.... [2] 'Comp' is not a casual HR term -- it has a technical definition that must line up across your plan document, payroll codes, and recordkeeper/TPA setup.... [3] [Y]ou can delegate tasks, but you can't delegate responsibility. Even if someone else is signing your Form 5500 or managing your plan, ultimately, the buck stops with you." MORE >>
"The proposal is an ERISA fiduciary-process framework. It does not resolve whether, or how, a plan can access certain investments under the federal securities laws and related regimes.... [It] also does not provide an easy operational solution to the practical liquidity challenges that can arise in participant-directed plans ... The proposal sets forth a checklist of topics fiduciaries should be prepared to evaluate for each investment option, using an objective and well-documented process." MORE >>
"In the last few years, the bigger shift hasn't been 'equity vs. no equity' as much as how companies use equity compensation. Private companies are increasingly using Restricted Stock Units (RSUs) in later stages and mixing RSUs with options, rather than only options. The shift in equity compensation usage is prompting questions from payroll and benefits professionals because of the impact on the company's 401(k) plan." MORE >>
"[M]ost scenarios also show reductions in total plan costs and advisor compensation. The data also underscores a persistent reality: smaller plans continue to pay significantly more than their larger counterparts, and cost variation across providers remains substantial." MORE >>
"[T]he exemption for safe harbor 401(k) plans related to top-heavy testing is nullified when after-tax contributions are present. In such cases, the safe harbor plan must satisfy top-heavy requirements. However, the plan can take safe harbor nonelective and matching contributions into account in determining whether an employer has satisfied its top-heavy minimum-contribution obligation." MORE >>
"Plan sponsors need to keep their plans in compliance with the nondiscrimination rules to remain qualified, and this is normally accomplished by performing annual testing that demonstrates compliance. In certain cases where a plan passes the testing by a significant margin, plan sponsors are permitted to perform the testing on a three-year cycle if there have been no significant changes to the plan or the workforce." MORE >>
"Plan sponsors were hit with 15 [ERISA] complaints in recent weeks alleging they breached their fiduciary duties by retaining American Century's One Choice target-date fund suite, which for years has underperformed peers ... The suits span plans of varying sizes, from roughly $120 million to more than $1 billion[.]" MORE >>
