"[P]laintiff alleged that the ESOP's OIA ... would be worth more today had those assets been invested in a portfolio including stocks and bonds. The court largely denied the defendants' motion to dismiss.... While the court recognized that there may have been 'good reasons' for maintaining a high OIA cash balance (for example, liquidity to facilitate stock repurchases), it declined to give weight to Defendants' alternative explanations at the pleading stage." [Dawson-Roberts v. Norman S. Wright Mechanical Equipment LLC, No. 26-1171 (N.D. Calif. Jun. 25, 2026)] MORE >>
"The defendants argued that an unintentional error in counseling cannot support a fiduciary breach claim unless the plan language on the same topic is also ambiguous. The court rejected that argument, reasoning that ERISA imposes an affirmative duty on fiduciaries to convey complete and accurate information material to a beneficiary's circumstances, even when the beneficiary has not asked." [Williams v. Lawrence Livermore National Security, LLC Benefits and Investment Committee, No. 24-7593 (N.D. Cal. June 29, 2026)] MORE >>
"The Third Circuit confirmed that ERISA's duty of prudence is 'largely a process-based inquiry,' and that fiduciaries who hire an advisor, critically examine its recommendations and data, and follow up when needed to satisfy their duty -- even if the funds they retain underperform. The court provided rare appellate guidance on when summary judgment is appropriate on an ERISA prudence claim, distilling a three-part framework from its Unisys precedent for evaluating a fiduciary's process." [In re Quest Diagnostics ERISA Litigation, No. 24-2866 (3d Cir. June 22, 2026)] MORE >>
"The public comments clearly demonstrate a lack of consensus on the proposed regulation. The [DOL] now must weigh these divergent opinions as it develops a final regulation. Despite the controversy, however, the Trump Administration is expected to issue a final regulation before the end of the calendar year. Once in place for private sector ERISA plans, [NCPERS anticipates] that several state legislatures will consider legislative or regulatory changes along the same lines for their public sector DC plans." MORE >>
"If your company sponsors a health plan, especially a self-funded one, there is a good chance that you, or someone on your team, is an ERISA fiduciary. Most people in that position have never been told so. Here is what the role requires, why it has become one of the fastest-growing areas of litigation and enforcement risk for employers, and what to do if a claim or an investigator ever comes knocking." MORE >>
"When a plan sponsor commences a chapter 7 bankruptcy case, the trustee of the bankruptcy estate is responsible for terminating and winding down all retirement plans. The termination of a 401(k) or other retirement plan in bankruptcy requires careful coordination across multiple regulatory regimes." MORE >>
"The lawsuit claimed that the defendants ... violated their ERISA fiduciary duties by failing to remove certain allegedly underperforming investments from the company's 401(k) plan. But the Third Circuit disagreed, as the record reflected multiple markers of a prudent process.... Even if there were some flaws, as the plaintiffs claimed, the Court held that these alleged 'imperfection[s]' did not matter because 'ERISA mandates prudence, not perfection.' " [In re Quest Diagnostics ERISA Litigation, No. 24-2866 (3d Cir. June 22, 2026)] MORE >>
"In rejecting a motion to dismiss the suit, a federal judge noted 'The fact that the Committee might lawfully have used forfeitures to reduce UnitedHealth's contributions does not answer whether the Committee's decision to do that complied with its duty of prudence.'... [The judge] noted (and listed) 51 [similar cases] and wrote that he had carefully reviewed them all. Only to conclude that 'I identified no clear trend or consensus in these decisions that might justify a particular outcome on this motion.' " [In re: UnitedHealth ERISA 401(k) Litigation, No. 25-1751 (D. Minn. Jun. 9, 2026)] MORE >>
66 pages. "ICI's economic analysis investigated how the addition of a private market allocation could impact diversification and risk-return profiles of DC plan portfolios. [The] analysis summarizes findings from academic literature on private fund performance and conducts three quantitative exercises: applying statistical methodologies to unsmooth private asset returns ... analyzing a mean-variance efficient frontier; and simulating TDF glide path outcomes." MORE >>
"Lewandowski, like its sibling PBM cases, failed at the standing stage. But beneath that procedural outcome lies a developing framework of expectations and potential risk pathways. The complaints can shape what stakeholders believe plan fiduciaries should be doing, so plan fiduciaries should treat these dismissals not as 'wins,' but as warnings. Overall, these cases should encourage plan fiduciaries to understand their PBM arrangements, question conflicts and compensation, consider proactive steps, and remain updated with news and litigation." [Lewandowski v. Johnson & Johnson, No. 24-0671 (D.N.J. Nov. 26, 2025)] MORE >>
"[T]he DOL needs to issue an RFI ... about how participant-directed plans work and what services are provided to participants.... [T]here is a need for the DOL to have information about the prudent practices of smaller and mid-sized employers and their plans.... [T]he DOL should have emphasized that the cost of the additional services cannot exceed the value of the services to the participants.... [T]heir examples are inconsistent with how participant-directed plans work -- and particularly smaller and mid-sized plans." MORE >>
"In-plan annuities present a classic case of informational asymmetry. The plan sponsor, fiduciary committee, consultants, insurers, and recordkeepers generally possess sophisticated actuarial, financial, and mortality information that the average participant neither possesses nor can independently obtain. Participants frequently hear only the appealing phrase: 'Guaranteed income for life.' " MORE >>
"[T]he Third Circuit affirmed the District Court's grant of summary judgment to Quest Diagnostics and its plan committees, holding that the fiduciaries of Quest's 401(k) plan did not breach their duty of prudence under ERISA by continuing to offer two underperforming investment options.... The court grounded its analysis in the principle that ERISA fiduciary duties derive from the common law of trusts and that the statute is concerned principally with process rather than outcomes, emphasizing that a fund's poor performance alone does not mandate drastic or sudden action." [In re Quest Diagnostics ERISA Litigation, No. 24-2866 (3d Cir. June 22, 2026)] MORE >>
"This article examines how common investment adviser compensation structures can create conflicts of interest that undermine retirement outcomes and increase fiduciary risk for plan sponsors. It outlines key conflict areas and explains how these arrangements can influence recommendations. The paper provides practical guidance for identifying and mitigating conflicts, emphasizing the importance of fee transparency, independent advice, and compensation models that align with participants' best interests." MORE >>
"The litigation risk around Pension Risk Transfer annuities is increasing, not decreasing.... The new PBGC opinion letter is especially important.... The very reason PBGC says it no longer needs early warning is the same reason retirees suffer a present legal and economic injury." MORE >>
"Employers that are now receiving settlement proceeds should be aware that they may have fiduciary duties under ERISA with respect to the use of any proceeds from the settlement fund.... Unless specific guidance is issued related to the BCBSA settlement, employers may want to use the [the DOL's prior MLR guidance] as a reference when determining how to calculate what portion of the BCBSA settlement proceeds should be considered 'plan assets,' and how those funds can be used." MORE >>
"While the judge dismissed one count of the complaint for alleged breach of the duties of prudence and loyalty under ERISA regarding the reasonableness of 401(k) plan fees, he allowed the other four counts to proceed.... The proposed class alleges that Lockheed and its investment management subsidiary breached their fiduciary duties of prudence and loyalty under ERISA by selecting and retaining the TDFs despite their poor performance." [Fezer v. Lockheed Martin Corp., No. 25-0908 (D. Md. Apr. 16, 2026)] MORE >>
"With this rule, the DOL proposes a regulatory safe harbor from which the acts of plan fiduciaries of defined contribution plans will be given the presumption of prudence.... [N]early 45,000 comments were filed, with some comments providing substantive suggestions to improve the implementation of the rule and other comments objecting to the rule because of concern that it will encourage the inclusion of risky, complex, and higher cost investment options, and result in less protection for Americans' retirement savings. It remains to be seen how the DOL will respond[.]" MORE >>
"For plan sponsors, the proposal is less about introducing entirely new requirements and more about reinforcing how decisions should be documented and communicated. In practice, that means: [1] Make sure the plan's investment process is documented -- not just the conclusion. [2] Ensure committee minutes reflect the evaluation and discussion. [3] Be clear on how advisors are being used in the decision-making process. [4] Continue to monitor investments after selection." MORE >>
"Consistent with existing ERISA principles and Supreme Court guidance, the proposed rule confirms that the same fiduciary standards apply to all investment options, regardless of whether they invest in public or private markets. As always, fiduciaries must maintain a prudent process that considers all relevant facts and circumstances when evaluating plan investments." MORE >>
"The rapid advancement of AI creates new fiduciary, operational, and governance risks for pension systems. Outright bans are not realistic. Developing a dynamic, principle-based AI governance is essential to protecting beneficiaries' data, while safely streamlining efficiencies and enhancing returns." MORE >>
"FAB 2026-01 rests upon an assumption fundamentally at odds with ERISA’s fiduciary framework. The FAB repeatedly suggests that fiduciaries may satisfy their obligations through process-oriented reliance upon service providers, consultants, product manufacturers, and other market participants. Yet ERISA §404(a) imposes a duty far more demanding. A fiduciary must engage in an independent investigation and objective evaluation sufficient to determine whether an investment is prudent and in the best interests of participants." MORE >>
"Of the six factors, current practices are probably the most closely aligned with the DOL's expectations about the evaluation of fees and costs. That is due in part to the laser focus on fees and expenses of investments and service providers by plan sponsors and advisors, which in turn is due in part to the focus on fees and costs by plaintiffs' attorneys in ERISA fiduciary breach litigation." MORE >>
"A central theme of the proposed rules is that ERISA's prudence standard focuses on the fiduciary's decision-making process and requires an objective evaluation of relevant factors at the time an investment decision is made, rather than judging the decision based on subsequent investment performance. The proposed rules also state that fiduciaries who satisfy the safe harbor should receive substantial deference regarding their investment decisions." MORE >>
"Fiduciary oversight in health plan consulting means an advisor accepts legal accountability for acting in the plan's best interest, not just advisory responsibility, but a formal, contractual commitment to prudent plan stewardship. For self-funded employers, understanding why this standard is gaining traction is increasingly important as regulatory scrutiny and litigation risk around health plan management continue to grow." MORE >>
