"Segal analyzed the administrative expenses reported by DC annuity funds in Form 5500 filings for 2023 and 2024. When segmenting the data by plan type, geography, plan size and participant size, the data not only showed clear patterns in administrative cost, but provided guidelines to help plan sponsors understand the fees they should expect or negotiate for their plans. [This article presents those] findings and outline[s] seven steps trustees of plans with outdated fee structures can take to lower administrative costs." MORE >>
"[The recent SEC] staff statement on pooled employer plans (PEPs) ... announced that an ERISA-covered PEP would be allowed to rely on the 'single trust' exclusion to avoid registration as an investment company. Second, the staff confirmed that collective investment trusts (CITs) may use the existing Rule 180 exemption when issuing interests to qualifying PEPs that include self-employed individuals.... [T]he biggest takeaway ... may be what it didn't say about the multitude of other multiple employer plans (MEPs)." 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 >>
"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 >>
"A combination of stronger education and tools, along with accessibility to lifetime income options, could help workers better prepare for a successful retirement. Employees surveyed reported wanting 'structured, meaningful guidance' from employers, with almost all (94%) emphasizing that companies should provide resources on how to make retirement withdrawals. Nearly half (49%) even say it's the employer's responsibility to provide guidance." MORE >>
"Up to 33% of the SFA may be invested in return-seeking assets. The remaining SFA must be invested in investment-grade fixed-income securities and cash. PBGC says it has received questions about which fixed-income investments qualify as permissible SFA investments and the types of derivative exposure that are allowed. In response, they propose several clarifications and amendments to the investment rules." 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 >>
"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 >>
"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 >>
"[A recent NBER working paper] points to a lack of institutional guidance for investors who are overwhelmed by the volume and diversity of annuity products, as well as the way they are framed.... protection, payout rates, fees, survivor benefits, liquidity, and other issues. When an annuity is a default option, or even just made available within a plan, that provides a framework for an interested investor." 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 >>
"[O]ver half of institutional consultants expect most clients to incorporate active non-core fixed income options and 45% predict their clients will adopt multi-asset inflation hedging strategies, as more look to safeguard savings in an uncertain market.... A high number of consultants and advisors expect clients to consider blended target-date funds (TDFs) as a new default strategy ... Close to half (46%) of aggregator firms believe they'll see more clients adopt fully customized TDFs, while 85% consider participant-personalized TDFs as 'next-generation defaults.' " MORE >>
"[A]ccountants can track the factors that impact the net value of pension liabilities.... [E]mployers should be aware of and assess the viability of continuing to offer DB pension plans.... [P]rofessionals should consider the types and terms of DC plans as a component of the overall benefits offered to employees to determine their feasibility. Lastly, while recent trends in stock market returns and interest rates have helped reduce the financial pressures on pension plans, these trends (not to mention global trade and health crises) can reverse quickly." MORE >>
"Nearly 45,000 comments poured into the [DOL] in response to its proposed rule on fiduciary duties in selecting qualified designated investment alternatives for 401(k) and other defined contribution retirement plans. They revealed a sharp divide about how far plan fiduciaries should be allowed to go when considering alternative investments ranging from private equity and private credit to digital assets." MORE >>
"This article explains how pension funds can access best-in-class, high-growth, late-stage private technology companies at significant discounts to public market valuations through a small-ticket secondaries manager -- and why a disciplined underwriting framework makes this strategy particularly well-suited to pension funds' long-term, capital-preservation mandates." MORE >>
"[A] report from Cerulli Associates expects the merger and acquisition (M&A) market to move $4 trillion over the next decade. The number of advisors retiring is increasing daily, with over 26,000 expected to exit the workforce over the next decade ... Over half (54%) of RIAs in Cerulli's data are pursuing an acquisition, with hybrid RIAs being the most acquisitive independent channel." MORE >>
