"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 >>
"The question now before the Court is whether plaintiffs alleging imprudence based on underperformance must plead a 'meaningful benchmark' at the motion-to-dismiss stage and, if so, how closely the comparator must align with the challenged fund's objectives, risks, and strategy.... Briefing and oral argument will occur this spring and a decision is expected in or before June 2026." [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 >>
"[T]wo former DOL officials have now weighed in supporting the plaintiffs in an ERISA litigation suit.... [T]he brief hearkens back to the environment pre-ERISA, and the history with the Studebaker-Packard Corporation's bankruptcy, and subsequent loss of pensions by its workforce that (eventually) provided the impetus for [ERISA].... They write that the suit 'plausibly alleges a concrete and particularized injury: a non-speculative, materially increased risk of nonpayment that is fairly traceable to the challenged fiduciary decision and redressable through ERISA's remedial provisions, including equitable relief.' " [Konya v. Lockheed Martin Corp., No. 24-0750 (D. Md. Mar. 28, 2025; on appeal to 4th Cir. No. 25-2061)] MORE >>
"Individual plan participants entangled in 401(k) excessive-fee and investment-underperformance lawsuits had a median recovery of just $67.79 in 2025, even as law firms representing plaintiffs averaged $1.59 million per case in fees ... While supporters of such complaints argue that litigation (and the threat of litigation) deter misconduct and force better plan practices, critics say the figures show workers gain little, while employers face mounting costs that ultimately shrink retirement benefits and plan services." MORE >>
"71% of employed TDF investors feel confident about reaching their retirement goals, compared with just 58% of non-investors.... Among those with TDF options available within their employer-sponsored retirement plan, 83% of employed participants and 86% of retirees said they currently invest in TDFs, with the majority citing ease of use, built-in diversification, professional management and automatic rebalancing as their top reasons for investing in TDFs." MORE >>
"The increased attention from regulators, lawmakers, and major market participants such as JPMorgan suggests that the role and influence of these firms are under unprecedented scrutiny. While companies should continue to follow established guidelines and best practices, and utilize market trends to inform their proxy voting and governance strategies, it is equally important to remain adaptable." MORE >>
"The company's 401(k) plan covers about 63,000 participants and holds nearly $15 billion in assets, according to the complaint. Roughly one-third of these funds were in what plaintiffs termed 'underperforming' products ... The former employees argued that the company was involved in self-dealing and prohibited transactions under ERISA because it designed its own funds, picked the managers, decided how assets were allocated and then collected related fees." [Lowbruck v. Dell, No. 26-0209 (W.D. Tex. complaint filed Jan. 28, 2026)] MORE >>
"Retirees can use a life insurance retirement plan to supplement their income, but it might not be the most effective strategy. Here are three alternatives to consider." MORE >>
"[T]here have been glimmers of hope signaling that the Supreme Court's decision in Cornell, despite its initial impact, may actually provide an unexpected playbook for fighting back against meritless litigation.... In recent weeks, two courts have applied two of Cornell's so-called screening tools to dismiss meritless claims, and a third court is considering whether to implement another." MORE >>
"The standing doctrine advocated by Lockheed is inapplicable to the circumstances here and would license Lockheed or any other plan sponsor to select almost any insurer not in immediate danger of failing in the near future, even those with lower ratings and riskier business models than Athene. And ... with annuity contracts the future can extend for many decades." [Konya v. Lockheed Martin Corp., No. 24-0750 (D. Md. Mar. 28, 2025; on appeal to 4th Cir. No. 25-2061)] MORE >>
"Plan fiduciaries should monitor the potential reclassification of proxy advisors as ERISA fiduciaries. Such a change would require proxy advisors to demonstrate that their recommendations are based solely on participants' financial interests, potentially increasing their compliance and litigation risks. This uncertainty may also accelerate the trend of companies ... developing in-house proxy analysis solutions to replace external advisors." MORE >>
"According to the allegations in the Complaint, Bloomberg failed to remove two funds from its Plan ... despite those funds suffering from poor investment performance for over a decade." [Rajappan v. Bloomberg L.P., No. 26-0785 (S.D.N.Y. complaint filed Jan. 29, 2026)] MORE >>
"A well-funded plan is certainly a nice achievement, but it does come with some new challenges -- namely, higher contribution volatility.... [T]here will certainly be years with negative returns, and it is not unheard of for assets to return -15% in a single year. And if your assumption is a 6.5% return, that -15% return translates to a loss of over 20%! We do have asset-smoothing techniques that dampen this volatility, but a large asset loss will still result in an unexpected increase in the contribution amount. " MORE >>
14 pages. "The U.S. retirement system is at a pivotal moment -- shaped by evolving regulation, rapid technological change, and a renewed focus on meeting the diverse needs of plan participants. This [report spotlights] three transformative themes: enhanced diversification in defined contribution (DC) plans to address modern market complexities, the accelerating impact of artificial intelligence (AI) across the retirement ecosystem, and the growing demand for personalized advice solutions." MORE >>
"T. Rowe Price's solution for diversification ... is to expand the opportunity to include private assets in multi-asset products.... [P]rivate markets overall have grown by 618% in the past 15 years, at nearly three times the speed of public assets' growth.... [P]rivate markets may also provide investors access to private company growth and may return premiums that differ from public-only portfolios." MORE >>
"82% said their use of AI for finance had increased in the past 12 months. Overall, 71.8% of respondents said they made financial decisions as a result of AI guidance or information, and almost one in eight -- 11.9% -- said they took 'significant actions' in their retirement planning following AI feedback." MORE >>
"For years, Morningstar has positioned itself as the independent umpire of the mutual fund world.... If Morningstar approves it, fiduciaries feel safe. But buried in Morningstar's own SEC filings is something most plan sponsors, consultants, and courts do not realize: Morningstar is deeply embedded in the business of helping insurance companies design retirement plan investment menus built around CITs, annuities, and proprietary insurance wrappers -- the very structures now raising ERISA prohibited transaction concerns." MORE >>
"[T]he current proposal would apply to all PRT business, regardless of the specific investment and risk management strategies employed by the issuing company. However, the ARCS noted in our discussions that evaluating the appropriateness of many of the elements of the proposal requires an integrated analysis of the liabilities, the supporting in force assets held on each valuation date, and the company's investment and asset/liability management (ALM) strategies." MORE >>
"The plans impacted by this change are ... DB pension plans where participant benefits are communicated as an account balance, which include pay credits and interest credits based on one of the following investable market returns: [1] The return on plans' assets; [2] The return on a subset of the plans' assets that approximates the associated cash balance liabilities; [3] The return on a regulated investment company." MORE >>
"The decline of defined benefit plans means fiduciaries need to give lifetime income products greater consideration.... The accumulation of assets in TDFs provides an opportunity to allow participants to annuitize, partially or fully, and the growth of the retail market shows a level of demand that would probably be better off if it were directed to in-plan options." MORE >>
"The Internal Revenue Code, [ERISA], and their supporting regulations do not expressly prohibit cannabis-related investments in qualified retirement plans. However, the federal illegality of cannabis significantly complicates fiduciary compliance and provider acceptance. Therefore, retirement plans and their providers remain reluctant to embrace such investments." MORE >>
"There is no statute that requires a 'meaningful benchmark.' ERISA's prudence standard focuses on process, not performance relative to a counterfactual benchmark. Benchmarks were a judicial convenience, not a substantive legal test." MORE >>
"This case promises to be critical to how courts handle 'underperformance' litigation -- cases in which plaintiffs challenge the prudence fiduciary/committee investment decisions based on a retrospective analysis of the targeted plan funds vs. other investment options." [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 >>
"On January 8, 2026, the US District Court for the Southern District of New York dismissed (with prejudice) plaintiffs' claims ... holding both that plaintiffs lacked standing to sue and that they had failed to state a claim under ERISA. The case is unusual because it did not, as other PRT cases have, involve Athene, and the Verizon annuity contracts included certain protections with respect to, e.g., reinsurance and the treatment of plan assets." [Dempsey v. Verizon Comm. Inc., No. 24-10004 (S.D.N.Y. Jan. 8, 2026)] MORE >>
"[T]he Protecting Prudent Investment of Retirement Savings Act (HR 2988) ... would significantly restrict the consideration of non‑pecuniary factors in retirement plan investing.... It would also impose new nondiscrimination rules for service provider selection, tighten fiduciary obligations with respect to proxy voting, and require enhanced disclosures for brokerage windows." MORE >>
