News Archive

"In effect, the DOL is signaling to courts (and the public) how it interprets [ERISA], and how plan fiduciaries should act, potentially shaping litigation outcomes and clarifying expectations without formal rulemaking. This approach appears consistent with the DOL's broader agenda aimed at reducing compliance burdens and providing plan fiduciaries with more flexibility in terms of fulfilling the obligations."  MORE >>

"The DOL made a major step forward with the 404a-5 fee disclosure in 2012.... Wall Street and the Insurance industry ... have moved away from transparent SEC Mutual Fund structures into state-regulated insurance annuity structures and state-regulated CIT structures. These poorly regulated state structures can allow them to hide Crypto, Private Equity, Private Credit, and annuities. While prior DOLs have been passive on this issue, the Trump DOL is actively helping to block fee and risk transparency in statements with amicus briefs."  MORE >>

"For crypto specifically, attention hinges on the design of the upcoming fiduciary safe harbor. This regulatory ''checklist' is intended to immunize fiduciaries from liability for investment losses, provided specific standards are met. Its critical pillars are expected to include qualified custody requirements, liquidity constraints and portfolio allocation caps. Even after the major regulatory hurdle is cleared, however, broad adoption will likely unfold more akin to a glacial shift over several years than like a speculative spark."  MORE >>

"This [article] explores a series of policy recommendations to the several regulators impacted by the Executive Order.... [The] article also includes suggestions as to what market participants such as investment managers, fund sponsors, insurance companies, recordkeepers, and intermediaries as well as Plan fiduciaries can do now in light of evolving legal and commercial developments."  MORE >>

"Allowing sophisticated investors to direct the investment of their own accounts into alternative investments may be the wave of the future in some profit-sharing plans. But investing for a defined benefit plan is a whole other animal. A fiduciary needs to be informed about how a defined benefit plan works so as to understand how investment return can affect the funding obligations.... Investing in alternative investments, like cryptocurrency and private equity alternatives, may not always be appropriate for all plans."  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 >>

"While insurance regulation is technically state-based, the NAIC writes the model laws, develops solvency standards, drafts accounting rules, and coordinates national policy. State regulators almost uniformly adopt NAIC models.... Which means this private, membership-based organization effectively shapes the rules governing: [1] Trillions in life insurance reserves; [2] Over $2 trillion in individual annuity reserves; [3] The solvency standards protecting retirees; [4] The accounting treatment of general account assets; [5] The risk-based capital formulas that determine whether insurers survive or fail. And yet, for something that central, transparency has lagged far behind modern expectations."  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 >>

"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 >>

"TDFs are confidence builders because participants are told that they are smart and safe. And it doesn't hurt that they have in fact been smart and safe following the crash of 2008. But what will happen to TDF participants when the next crash happens? After all, the last stress test of TDFs was way back in 2008 when TDFs failed to protect. That will happen again."  MORE >>

"Private investments are not entering defined contribution plans because they are exciting. They are entering because the industry is increasingly able to reconcile institutional investment concepts with participant-centric realities -- primarily through professionally managed, multi-asset structures. For 3(38) fiduciaries, this evolution presents both an opportunity and a responsibility."  MORE >>

"While managed account saw an increase in usage in 2022 and 2023, engagement with the funds has since dipped. ... [O]ver the last three years, 14% of DC plans have terminated managed accounts as they embark on 'more formal fiduciary reviews' due to intensifying fee sensitivity and closer assessments of participant engagement and personalization."  MORE >>

"[M]any advisors and record keepers are looking beyond omnibus accounts to focus on and serve individuals in the plans they manage, leveraging worksite access and endorsement, whether explicit or implicit, by sponsoring employers.... Also driving the move beyond plan-level products and services is the need and desire for personalization.... Managed accounts are the next inevitable step, but only through better engagement, use of data and AI."  MORE >>

"The survey reveals a sustained shift toward passive target date funds ('TDFs'), an increase in managed account terminations, continued fee compression, changes in US large cap equity structures, and a selective approach to alternative investments."  MORE >>

"With new entrants still joining an already competitive market, annuity writers' pricing practices must maintain the level of sophistication necessary to succeed. VM-22 PBR both represents a significant increase in complexity relative to the existing commissioners' annuity reserve valuation method (CARVM) and serves as a new measure by which to evaluate product profitability and risk. This paper discusses several important considerations for insurers to keep in mind as they adapt their pricing models and philosophy to a VM-22 PBR world."  MORE >>

"Understanding market dynamics is crucial for pension fund managers seeking to safeguard returns and build resilience amid heightened macroeconomic uncertainty. With United States public pension funds holding record-high allocations in equities, [this article highlights] the increased risk of market volatility in 2026."  MORE >>

"Strategic use of guardrails, backup plans, and market stress testing can help firm owners make more confident and strategic decisions over time. Further, reducing low-reward risks while doubling down on growth-aligned ones allows advisory firms to scale more sustainably. Advisors who understand and intentionally shape their firm's risk profile are better equipped not just to survive, but to grow something uniquely molded to their long-term vision!"  MORE >>

"The nation's highest court's consideration of a 401(k) suit involving alternative investments and the need for a 'meaningful benchmark' has been bumped till next term. While the justices recently agreed to extend briefing due dates in the case ... its absence on the court's April calendar indicates a delay, in this case till next term." [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 >>

"Managed accounts offer personalization and improved outcomes but raise cost-effectiveness concerns for sponsors. ROI comparison between managed accounts and education programs is needed for better decision-making. More due diligence is recommended before implementing managed account solutions in retirement plans."  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 line between who can and cannot invest in private securities is mostly governed by wealth and income, and this is arbitrary, [SEC Chair Paul Atkins] argued.... Atkins went on to argue that workers already have indirect access to alts in their pensions, 'why not extend it to 401(k)s?' He added that 'one cannot necessarily have a balanced portfolio in this current market without having exposure to the private markets.' "  MORE >>

"CITs can add value to a retirement plan investment lineup, but plan sponsors should exercise caution. Their unique regulatory and structural characteristics demand thorough due diligence and detailed diligence documentation. Plan fiduciaries must look beyond a CIT's fund name to understand all facets of a CIT and evaluate its appropriateness for their plan(s) and participants."  MORE >>

"Over the last decade, a line of US Supreme Court decisions ... have pushed fiduciary risk away from a focus on investment results and squarely onto the quality of the process and the paper trail that supports it. Together with regulatory guidance, these cases send a simple message: Under ERISA, prudence is a living, documented process, not a scoreboard of quarterly returns."  MORE >>