News Archive

"[B]enefit leaders work closely with their brokers to get a broad view of the carriers and solutions that will best meet their needs. In addition to the kinds of benefits they're looking for, they should communicate administrative priorities — such as what kind of technology is used to simplify processes for both HR and employees, and how the company will be billed — to help brokers curate a strong list of candidates[.]"  MORE >>

"Foyer, a savings app that acts as a dedicated 401(k) for homeownership, is now being offered as a benefit through AI-powered platform Nayya, a tool that already supports millions of employees through their workplace benefits and financial options. Under this partnership, Foyer helps employees move from renting to owning by saving for a down payment, improving credit, and handling the homebuying process -- all from one app."  MORE >>

"Because qualified transportation plans do not fall under either category (i.e., they are neither employee welfare benefit plans nor employee pension benefit plans), they are not employee benefit plans subject to ERISA's annual reporting obligation. Code Section 6039D previously imposed an annual information return requirement on certain 'fringe benefit plans,' but qualified transportation fringe benefit plans were not included."  MORE >>

"77% of respondents expected health insurance sales to increase in the next year, 64% anticipated growth in group life insurance sales, and 62% forecasted more sales of supplemental health insurance products, such as hospital indemnity and critical-illness coverage. Yet nearly half of brokers cited administrative complexity as a core challenge to employers integrating supplemental health offerings into employee benefits packages."  MORE >>

"For years, voluntary or enhanced benefits were treated as the safest part of the benefits package with minimal risk, explains Eric Silverman, founder of Voluntary Disruption. He says ERISA lawsuits involving accident, critical illness, cancer and hospital indemnity plans have forced a closer look at how these benefits are selected, priced, monitored and communicated. And the key takeaway is that process matters, even when benefits are not employer-funded."  MORE >>

"Despite cost pressure, companies are doubling down on what consistently works: wellness programs, which have become both a cost mitigation tool and retention lever. Employers are intensifying investment in mental health access, preventative care, and fertility. In a year defined by precision, wellness is one of few areas where benefits leaders see both measurable ROI and meaningful employee value."  MORE >>

"Brokers said the top ways carriers could support employers include enhancing enrollment tools and communication materials, communicating the value proposition for voluntary benefits, and offering more customizable product options.... Brokers expect strong growth in core and supplemental benefits, reflecting broader budget optimism.... Employers value the impact benefits have on morale more than brokers do.... Brokers believe education support from carriers could help boost employee adoption of supplemental health benefits.... Administrative complexity is a challenge to the adoption of supplemental health benefits."  MORE >>

"Ancillary employee benefits, like wellness programs, flexible work options, and financial wellness tools, go beyond traditional offerings to support employees' full lives and boost satisfaction, productivity, and retention. This guide breaks down the types of ancillary benefits, how to implement them effectively, and why they're essential in a modern, people-first workplace. With actionable tips and real-world examples, it's your roadmap to building a benefits package that truly stands out."  MORE >>

"While health and voluntary benefits are attracting growing attention, 401(k) plans remain the most frequently targeted ERISA plans.... Settlements remain significant but individual participants typically receive modest payouts ... Excessive fee and imprudent investment cases in 2025 averaged just over $3 million, while tobacco surcharge claims averaged nearly $5 million. Participants generally received $55-$70 per person, with plaintiffs' attorneys taking roughly one-third. Over the past five years, total settlements across ERISA cases have exceeded $1.3 billion."  MORE >>

"With many millennials and Gen Z delaying marriage and children, they're turning their emotional and financial focus toward pets. This investment naturally shapes their expectations for their benefits packages, as they're seeking options that reflect what matters most to them."  MORE >>

"Despite the many unknowns ... these lawsuits will: [1] Provide in-depth briefing on core ERISA foundational questions.... [2] Push the boundaries of fiduciary duties and prohibited transaction rules under ERISA.... [3] Create a chilling effect on employers offering voluntary benefits."  MORE >>

"For plan sponsors, this evolving litigation environment is an important reminder that understanding fiduciary risk -- and taking proactive steps to manage it -- is no longer optional.... The central argument being tested is that when an employer selects voluntary benefit programs, endorses them, and receives additional services from brokers that may be considered compensation, the employer may be exercising sufficient control for those benefits to be considered ERISA-covered plans, or at minimum subject to fiduciary standards."  MORE >>

"Employers should carefully consider whether Voluntary Benefit Plans not intended to be subject to ERISA should be listed or included in an ERISA wrap document or summary plan description .... Employers and plan administrators who offer Voluntary Benefit Plans that are intended to be exempt from ERISA should ... include clear written statement that such plans are intended to meet the ERISA exemption in the plan's offering materials.... If a Voluntary Benefit Plan is not required to file a Form 5500 because it is not subject to ERISA, employers should not file one or include information relating to such benefits on the Form 5500 for its ERISA welfare plans."  MORE >>

"These filings signal a coordinated litigation strategy that could fundamentally reclassify certain 'voluntary' benefits as ERISA‑covered plans, significantly expanding fiduciary exposure for employers. By targeting both employers and national benefits consultants, the lawsuits raise the stakes for plan design, vendor relationships, and long‑standing assumptions about ERISA's safe‑harbor boundaries."  MORE >>

"in light of this new set of lawsuits, employers that have historically assumed their voluntary benefits are exempt from ERISA's fiduciary duties should take a fresh look and really make sure they qualify for that exemption. In general, voluntary benefits may avoid ERISA if they meet the [DOL's] ERISA voluntary plan safe harbor ... Many employers have assumed their voluntary plans are not subject to ERISA, but these lawsuits challenge that assumption."  MORE >>

"[A] key question that courts will have to grapple with in each of these cases is whether the plans fall outside the ambit of ERISA in accordance with the [DOL's] 'voluntary plan' safe harbor ... Plaintiffs maintain that the employers lacked any process to review, select or monitor carriers and brokers or to confirm that broker commissions were reasonable. They further allege ERISA prohibited transactions, asserting that employers and brokers caused the payment of excessive commissions from plan assets."  MORE >>

"The complaints generally allege that the employers offering these programs could and should have negotiated lower premiums. According to the plaintiffs, the higher premiums may be the result of potentially excessive broker commissions, and excessive compensation to the consultants that administer them. The complaints speculate that employers offer these voluntary benefit programs without first engaging in a request for proposal process."  MORE >>

"Employees may take full advantage of both the credit and the exclusion for employer reimbursements but not for the same expenses.... Because employer-provided adoption benefits are subject to FICA, most employees will use the tax credit first.... Lower-income employees may be unable to take full advantage of the credit.... Employer-provided adoption benefits can help employees' cash flow."  MORE >>

"Historically, benefit consultants functioned primarily as intermediaries between employers and insurance carriers and did so under the protection of ERISA's fiduciary exemption. But here plaintiffs allege that consultants exercise discretion in selecting insurance carriers and insurance policies, and also in structuring voluntary benefit plans to gain sizeable commissions -- actions that, plaintiffs argue, make these consultants plan fiduciaries."  MORE >>

"[Employers] should carefully consider whether the voluntary benefits they offer fit within the DOL's safe harbor ERISA exemption for voluntary programs.... [S]eemingly innocuous actions can render the exemption inapplicable, which means that the voluntary programs are subject to ERISA, including its fiduciary rules. While these rules and the fiduciary duties they impose on health and welfare plan sponsors are not new, they have recently become the focus of plaintiffs' attorneys."  MORE >>

"The complaints show consultants earning 22% to nearly 40% of premiums, far above the typical 10% industry standard.... When only 25-35 cents of every premium dollar goes to paying claims, with the rest consumed by commissions and administrative costs, the math simply doesn't support fiduciary prudence.... What plan sponsors should do: ... [1] Request complete disclosures ... [2] Audit voluntary benefits ... [3] Document fiduciary oversight ... [4] Restructure conflicted relationships."  MORE >>

"The complaints advance a unified and increasingly familiar theory: once voluntary benefits are offered through an ERISA-governed welfare plan, they are subject to ERISA's full fiduciary framework.... According to the plaintiffs, failures in process, rather than outcomes alone, caused plan participants to pay excessive and unreasonable premiums, while brokers and other service providers reaped outsized financial benefits."  MORE >>

"These novel lawsuits challenging voluntary benefits are not only notable for what they allege, but also because they implicate consultants and brokers.... [P]laintiffs may be leveraging data gathered regarding service provider compensation disclosed pursuant to the [CAA] ... [E]mployers should consider creating a process to monitor voluntary benefit programs offered to their employees, including the commissions charged by the various brokers, akin to what many employers maintain to monitor retirement plans and health plans."  MORE >>

"Determining what employer actions constitute an endorsement of the voluntary program, and thus cause the program to be subject to ERISA, is highly fact-specific but may include actions such as using an employer logo or its letterhead on communications about the program. Employers should contact their legal counsel to determine if a voluntary benefit program is subject to ERISA."  MORE >>

"51% of brokers said voluntary products generate more than half of their sales revenue. Plaintiffs' law firms are connecting the dots between incentives, misuse of plan access and conflicted advice.... Voluntary benefits themselves are not the problem -- the incentives are.... [E]mployers should treat any recommendation, product access or employee interaction as an area requiring thoughtful, documented fiduciary oversight -- especially when employees are making decisions influenced by those recommendations."  MORE >>