News Archive

"Ultimately, the objective of the Executive Order is to dissuade proxy advisors from making recommendations based on DEI and ESG initiatives. The utilization of the ERISA fiduciary statutory scheme as a tool for dissuasion has direct and significant impacts on service providers to retirement plans. From a practical perspective, service providers and fiduciaries to ERISA plans should consider the following:"  MORE >>

"This [article] provides an overview of President Trump's recent Executive Order directing regulatory agencies to take action to enhance 401(k) plan access to such strategies, and continues by summarizing some prior history, moves on to outline concerns of plan fiduciaries and then offers some of the reasons proponents and opponents have concerning alternative assets in 401(k) plans."  MORE >>

"Proxy advisors who provide recommendations and analysis to shareholders (including ERISA plan fiduciaries) regarding how to vote proxies on corporate matters may not fit neatly within the traditional fiduciary framework. However, the Executive Order directs the DOL to consider whether proxy advisors to ERISA plans should be ERISA fiduciaries because of their 'relationship of trust and confidence' with their clients."  MORE >>

"Data from the National Financial Educators Council (NFEC) found that participants say they lose out on $948 from their lack of personal finance knowledge, for a combined total of $246 billion in lost revenue. Further, close to half (48.6%) of survey respondents say that an inadequacy of their own financial prowess had led to losses of $500, while 14.6% report setbacks of $2,500."  MORE >>

"For more than 30 years, 'stable value' has been marketed to retirement plan fiduciaries as a conservative, low-risk, bond-like option. That description is only accurate for one form of stable value: diversified synthetic stable value. General Account (GA) and Separate Account (SA) stable value products are fundamentally different. They embed insurance spread products, opaque crediting decisions, and conflicted compensation structures that directly collide with ERISA's duties of loyalty, prudence, and prohibited-transaction rules."  MORE >>

"[T]he Order specifically names and targets two leading firms, Glass Lewis and Institutional Shareholder Services (ISS) ... [and] asserts that these firms use their influence to advance agendas such as DEI and ESG, which, according to the Order, may not align with the sole priority of investor returns. The Order directs the [SEC], Federal Trade Commission (FTC), and [DOL] to take actions intended to promote accountability, transparency, and competition."  MORE >>

"Through 2025, the retirement industry continued to lay the groundwork for in-plan retirement income ... In 2026 ... the focus will shift from creation to broader adoption by plan sponsors. Consultants and advisors will implement standardized fiduciary evaluation frameworks, making it easier for plan sponsor committees to assess, compare, and adopt retirement income options."  MORE >>

"[T]he government asserted that the Sixth Circuit's ruling is incorrect and identifies two principal errors. The first error is the Sixth Circuit's conclusion that a plaintiff need not allege a meaningful benchmark to state a plausible claim of imprudence based on relative underperformance.... The second error asserted is the Sixth Circuit's acceptance that the plaintiffs below had pled a meaningful benchmark when asserting that the S&P Target Date Fund (TDF) was an appropriate comparator to the challenged funds." [Johnson v. Parker-Hannifin Corp., No. 24-3014 (6th Cir. Nov. 20, 2024; cert. pet filed Mar. 26, 2025, No. 24-1030; DOL amicus brief filed Dec. 9, 2025)\]  MORE >>

"With respect to ERISA-covered retirement plans, the EO instructs DOL 'to consider' revising the current advice fiduciary regulation to explicitly include proxy advisors as ERISA advice fiduciaries. In this note, [the authors] briefly discuss the EO's overall 'theory of the case' and the instructions to SEC and FTC [and] then describe the EO's ERISA-related instructions to DOL."  MORE >>

"CFA charterholders are bound not only by applicable law (including ERISA), but by an independent professional code that places client interests, transparency, and integrity of the profession above product sales or industry narratives.... [A]ctively recommending annuities in 401(k) plans may run afoul of multiple CFA Institute standards, particularly where the risks and conflicts inherent in annuities are minimized, obscured, or ignored."  MORE >>

"It is interesting that the Supreme Court requested briefs from DOL with respect to both certiorari petitions and that DOL is now taking an explicitly pro-sponsor position. Indeed, in Home Depot the position it is arguing for -- that the plaintiff bears the burden of showing loss-causation -- is a reversal of the position it had taken in two previous amicus briefs to the Court.... In its briefs DOL cites concerns about excessive litigation resulting in 'increased costs,' decreased 'efficiency' and 'predictability,' and a reduction in 'investment choices.' " 
[Johnson v. Parker-Hannifin Corp., No. 24-3014 (6th Cir. Nov. 20, 2024; cert. pet filed Mar. 26, 2025, No. 24-1030; DOL amicus brief filed Dec. 9, 2025); Pizarro v. Home Depot, No. 22-13643 (11th Cir. Aug. 2, 2024; cert. pet. filed Dec. 3, 2024; DOL amicus brief filed Dec. 9, 2025)]   MORE >>

"Bipartisan legislation to change securities laws so 403(b) plans can offer collective investment trusts (CITs) passed the House on Dec. 11 as part of a larger package of capital market reforms (HR 3383). The CIT-related changes appear in a section entitled Retirement Fairness for Charities and Educational Institutions. The outlook for companion Senate legislation (S 424) is uncertain, but supporters hope the changes might pass Congress sometime in 2026."  MORE >>

"In the fact sheet accompanying the order, the White House accused two major proxy advisory firms, Institutional Shareholder Services Inc. and Glass, Lewis & Co.... of using their market dominance to push 'radical leftist policies' on U.S. corporations.... The order further tasked the [DOL] with strengthening fiduciary standards under [ERISA], which are already considered among the strictest under U.S. law, to ensure that pension fund managers and proxy advisers act solely in the financial interests of American workers and retirees[.]"  MORE >>

"The main takeaways are that in addition to selecting qualified staff, the public funds with the best funded status and risk management are those where there are: [1] effective governance and delegation of responsibilities between Boards and investment staff, [2] continuity of tenure in both organizations, [3] empowerment of staff to be long-term investors, and [4] a collaborative environment."  MORE >>

"[T]wo foreign-owned proxy advisors, Institutional Shareholder Services Inc. and Glass, Lewis & Co., LLC, play a significant role in shaping the policies and priorities of America's largest companies through the shareholder voting process.... The Chairman of the [SEC] shall review all rules, regulations, guidance, bulletins, and memoranda relating to proxy advisors.... The Secretary of Labor shall, consistent with the APA, take steps to revise all regulations and guidance regarding the fiduciary status of individuals who manage, or, like proxy advisors, advise those who manage, the rights appurtenant to shares held by plans covered under [ERISA], including proxy votes and corporate engagement, consistent with the policy of this order.... The Secretary of Labor shall take all appropriate action to strengthen the fiduciary standards of pension and retirement plans covered under ERISA. Such action shall include assessing whether proxy advisors act solely in the financial interests of plan participants and the extent to which any of their practices undermine the pecuniary value of the assets of ERISA plans."  MORE >>

"The [DOL] is now backing fiduciaries in a case involving criteria for a 'meaningful' benchmark ... 'As Judge Murphy pointed out in dissent, the majority's reasoning departs from the consensus in other courts of appeals,' the [DOL] began. 'In the view of the United States, this Court should grant review and restore uniformity to ERISA pleading standards.' " 
[Johnson v. Parker-Hannifin Corp., No. 24-3014 (6th Cir. Nov. 20, 2024; cert. pet filed Mar. 26, 2025, No. 24-1030; DOL amicus brief filed Dec. 9, 2025)]  MORE >>

"A growing chorus of government and employer voices has lined up behind Lockheed Martin Corp. in its high-profile appeal backing the legality of a pension risk transfer challenged by retirees. The case ... could shape the future of the PRT market, which has continued to grow in recent years." 
[Konya v. Lockheed Martin Corp., No. 24-0750 (D. Md. Mar. 28, 2025; on appeal to 4th Cir. No. 25-2061)]  MORE >>

"The full House voted 302-123 to approve the Incentivizing New Ventures and Economic Strength Through Capital Formation Act of 2025 [HR 3383], which includes a provision to amend securities laws to allow 403(b) plans to invest in collective investment trusts (CITs), aligning them more closely with 401(k) plans."  MORE >>

"In 2025, the consulting industry has quietly transformed into the single most important distribution channel for private equity. This shift cuts across every ownership model ... [T]he economic incentives all point in the same direction: Push pensions and retirement plans into higher-fee private equity and private credit -- regardless of long-term risk to beneficiaries."  MORE >>

"Traditional excessive fee lawsuits remain a major share of ERISA filings, but the contours of those claims are shifting.... One of the most notable developments of 2025 is the surge in lawsuits challenging how employers use 401(k) forfeitures ... To date, more than 80 cases have been filed since the wave began back in 2023, with over 30 cases having been filed just since May of this year.... Recent years have seen new lawsuits challenging what ERISA group health plans pay for prescription drugs. These cases have faced major obstacles[.]"  MORE >>

"We look forward to working with the administration on reforms that strengthen the proxy voting system to better serve retail investors and support the health of US capital markets. A fair and efficient proxy process empowers millions of Americans to shape the long-term success of their investments and the broader economy."  MORE >>

"The department's Employee Benefits Security Administration [EBSA] ... will execute the President's goal of restoring order to financial markets, including retirement investing, by curbing politicized corporate voting patterns pushed by proxy advisory firms.... 'I applaud the President's action to protect American investors by bringing transparency, competition, and accountability to the proxy services market,' said Secretary Chavez-DeRemer. 'This bold directive will benefit millions of American workers and retirees who have unknowingly had their investment decisions hijacked by foreign actors with misguided motivations."  MORE >>

"The SEC Division of Examinations has issued its 2026 fiscal year Examination Priorities. The Priorities include a focus on older investors, investing for retirement and rollovers. This article discusses those priorities."  MORE >>

"The US solicitor general advised the US Supreme Court to hear two pending ERISA disputes and rule in favor of the defendant employers ... In urging the justices to hear the case against Home Depot, the government acknowledged that it's taken the opposite position in prior briefs, including a 2023 brief supporting the plaintiff Home Depot employees in the US Court of Appeals for the Eleventh Circuit." [Johnson v. Parker-Hannifin Corp., No. 24-3014 (6th Cir. Nov. 20, 2024; cert. pet filed Mar. 26, 2025, No. 24-1030; DOL amicus brief filed Dec. 9, 2025); Pizarro v. Home Depot, No. 22-13643 (11th Cir. Aug. 2, 2024; cert. pet. filed Dec. 3, 2024; DOL amicus brief filed Dec. 9, 2025) ]  MORE >>

"A variety of nonprofit organizations have called on top leaders from both chambers of Congress in support of legislation that would allow plan sponsors of 403(b)s to include collective investment trusts (CITs) in their investment lineups."  MORE >>