"The U.S. Chamber of Commerce and the American Benefits Council filed a joint amicus brief ... asking the U.S. 4th Circuit Court of Appeals to set aside the ERISA class certification approved by a district court in a lawsuit involving the 401(k) pension plan of the National Rural Electric Cooperative Association....[The lawsuit was filed] by two current plan participants, representing a class of more than 77,000 participants.... The plaintiffs accuse NRECA and its fiduciary committee of breaching obligations under [ERISA] and charging the multiple employer plan's participants excessive administrative fees." [Mullins v. NRECA, No. 25-0994 (E.D. Va. Mar. 13, 2026; on appeal to 4th Cir. No. 26-0165)] MORE >>
"[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 >>
"[A recent study] systematically examines how consultants shape the investment behavior of U.S. public pensions.... The core conclusion is devastating. Consultants push pensions toward the same high-fee investments, often through the same networks of private fund managers, creating widespread portfolio convergence and systemic concentration risk -- yet the study finds no meaningful evidence that these consultant-driven shifts improve performance." 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 >>
"CalSavers, the largest state-facilitated automatic individual retirement account program for people who do not have access to a workplace retirement plan in the U.S., reduced employees' fees for program operations and underlying investments on May 1.... [T]he fixed account fee per participant was reduced to $3.50 per quarter ($14 annually) from $4.25 per quarter ($17 annually). The total annualized asset-based fee was reduced to a range between 0.225% and 0.39%, from between 0.325% to 0.49%." 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 >>
"[I]ndependent evaluation of a consulting relationship requires looking past process documentation to economic architecture. The most important questions are not about methodology. They are about money. How does your firm generate revenue beyond our retainer? Does any portion of your compensation, or that of your parent, flow, directly or indirectly, from recordkeepers or investment managers you recommend to us? ... Can you help us understand, in writing, every way your firm, not just your team, is compensated in connection with our retirement plan? How is individual consultant compensation structured, and does any component create incentives around provider relationships?" MORE >>
"The proposed regulation is responsive to [EO 14330] and, in fact, goes beyond it by describing the criteria that apply to all investments for participant-directed plans, including both alternative assets and traditional assets. That means that fiduciaries of plans that don't include alternative investments need to pay attention to this proposal as well. Also, while the EO limited itself to allocations to alternative investments as parts of asset allocation investments and strategies, the proposal is much broader -- it covers the selection of standalone alternative investments." MORE >>
"Reviewing the investment policy statement (IPS) was the most prevalent fiduciary action taken in 2025, consistent with 2024.... Plan governance and process returned as the top area of focus for DC plan sponsors in 2025 ... In 2025, relatively few respondents reported they currently include or are considering alternative investments in their DC plans' TDFs.... About 7 in 10 plan sponsors calculated their recordkeeping fees within the past 12 months.... 78% calculated investment management fees within the past 12 months ... All respondents offered some type of advisory service to participants." 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."
"A federal judge has dismissed a lawsuit that accused Fidelity of letting certain 'retail class' investors in its Fidelity Government Money Market Fund lose millions of dollars a year to high expenses when they're eligible for lower-cost 'premium' shares. The complaint alleged Fidelity and fund officials let some customers holding the money market mutual fund's retail share class (SPAXX) 'needlessly incur higher expenses' even when eligible for its lower-expense but otherwise identical premium share class (FZCXX)." [Davis v. Fidelity Management & Research Co LLC, No. 24-8142 (S.D.N.Y. Mar. 25, 2026)] MORE >>
"There are few, if any, other industries in which costs have declined as precipitously as in defined contribution.... As a result of the hyperfocus on fees, record keeper service has deteriorated, and most wealth advisors and their broker/dealers stayed away from a high liability, low margin business.... But the upside of this race to the bottom has been the focus on the participant ... The DC platform has become the hub for providing advice on all aspects of a participant's financial well-being, including selecting the right benefits. " 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 >>
"[1] Participants in larger plans may benefit from lower fees than those in smaller plans.... [2] Collective Investment Trusts now hold 42% of DC plan assets as sponsors seek lower costs.... [3] Despite over $6.3 trillion in DC plan outflows since 2015, this dynamic environment creates new opportunities for innovation and participant engagement. [4] DB plans ... account for a quarter of retirement distributions and support nearly 30 million people." MORE >>
"The suit also states that the defendant allowed BANA and its affiliate Merrill Lynch to act under the plan as trustee, custodian, recordkeeper, and/or investment manager, 'which presents conflicts of interest that implicate prohibited transactions under ERISA.' ... [The complaint also alleges] 'that Defendant has also allowed BANA to use its affiliate's role as recordkeeper to obtain information for use in its role as investment advisor.' " [Ventura v. Lithia Motors, Inc., No. 26-1786 (C.D. Calif. complaint filed Feb. 19, 2026)] MORE >>
"If the Supreme Court determines that all that is necessary for plaintiffs to plead is that fees are too high or performance is subpar when reviewed against a general index, 401(k) plan fiduciaries will have far greater exposure to being sued because more claims will survive a motion to dismiss." [Anderson v. Intel Corp. Inv. Policy Comm., No. 22-16268 (9th Cir. May 22, 2025; cert. pet. granted Jan 16, 2026, No. 25-498)] MORE >>
"Last year saw a near-record 155 fiduciary class lawsuits filed by plaintiffs' firms alleging violations of [ERISA] and breaches of fiduciary duty.... Defined contribution plans remained the most frequent target in these cases, named in 63% of last year's ERISA class action litigation. As in prior years, most lawsuits alleged excessive recordkeeping and/or investment fees.... Five of the last six years saw lawsuit totals greater than the overall annual average of 60 cases per year for the past decade." MORE >>
"Given the turbulent dynamic and the increasingly costly world of retirement plan litigation, what can advisors and plan sponsors do to make sure to better guarantee they don't end up on the receiving end of a Schlichter-inspired suit?" MORE >>
"Some 14% of defined contribution plans surveyed in December ... reported that they had eliminated their managed account programs since late 2023.... Nearly 20% of the 165 lawsuits filed between 2019 and late 2022 alleging [ERISA] violations included a claim over managed account programs ... Of the suits including such claims, 42% alleged that the managed account service fees were excessive, while 31% claimed the managed accounts underperformed compared to other plan options." MORE >>
"Part 2 examines the newest fronts in ERISA litigation, including the surge in forfeiture and voluntary benefits lawsuits ... Also addressed is the growing role of documentation, engaged oversight, and defensible process as courts continue to emphasize prudence over outcomes. This installment also looks at the evolving regulatory environment ... and what that could mean for plan advisors and sponsors. Ultimately, Part 2 focuses on practical steps fiduciaries can take now to strengthen governance, tighten documentation, and reduce litigation exposure." MORE >>
"[The Cunningham] opinion flagged a handful of tactics lower courts could use to weed out flawed cases, including ordering plaintiffs to address affirmative defenses early on, assessing attorneys' fees and sanctions, and carefully scrutinizing whether cases should be dismissed for lack of actionable injuries. Trial court judges have begun to follow the high court's advice, providing a potential roadmap for defendants' attorneys juggling the hundreds of would-be class suits filed under ERISA over the past several years." MORE >>
"The complaint, originally filed in March 2020, alleges the defendants failed to negotiate comparable contractual terms for the 401(k) plan's guaranteed investment fund and the company's defined benefit plan. Consequently, the 401(k) plan's GIF paid a significantly lower interest rate than the identical investment in the pension plan." [Sweeney v. Nationwide Mutual Ins. Co., No. 20-1569 (S.D. Ohio Feb. 9, 2026)] MORE >>
"This summary focuses on the responsibilities and role of ERISA fiduciaries in managing plan investments.... [1] Evaluate and update the investment structure ... [2] Draft and periodically review the Investment Policy Statement (IPS) ... [3] 404(c) and QDIA oversight ... [4] Review and monitor investment manager performance ... [5] Monitor and benchmark plan fees ... [6] Managed accounts evaluation and monitoring ... [7] Oversee required employee communications ... [8] Review overall plan utilization ... [9] Review defined contribution trends and overall plan effectiveness." MORE >>
"In FY 2025, EBSA closed 878 civil investigations. Of those, 556 investigations (63 percent) produced monetary results for plans or other corrective action, for a total of $714.4 million recovered.... In FY 2025, [EBSA] obtained 297 non-monetary civil corrections, including: [1] removing 15 fiduciaries, [2] barring 24 individuals from serving as fiduciaries, [3] appointing 18 fiduciaries, [4] improving missing participant procedures for 49 plans, and [5] implementing 61 global corrections across multiple ERISA-covered health plans." MORE >>
"During December, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process inched up 20 basis points, from 100.1% to 100.3% of a plan's accounting liabilities (accumulated benefit obligation, or ABO). That means the estimated retiree PRT cost is now 100.3% of a plan's ABO." MORE >>
