News Archive

"[T]he [DOL] recently filed its fourth amicus brief supporting employers in 401(k) forfeiture disputes.... The DOL's active involvement in these cases is good news for plan sponsors. These types of suits, which challenge acts permitted under current law, are designed simply to force a quick 'nuisance' settlement. It is the hope that the DOL's continued support and legal involvement will curb these suits quickly."  MORE >>

"While a surplus signals strong funding health, it also raises questions about how best to deploy excess assets within regulatory constraints. To make informed choices, plan sponsors need clear insight into what drives pension surpluses, how excess assets can be applied effectively and the compliance requirements that protect both organizational financial goals and employees' long‑term retirement security."  MORE >>

32 pages. "Retirees who received a lump sum report an average balance of around $100,000.... The pace of depletion has accelerated over time: in 2017, retirees who depleted their lump sum did so in 5½ years, on average; by 2022, that timeframe had shortened to 5 years; and, today, lump sums are being depleted in just 4½ years. This rapid drawdown leaves many retirees vulnerable, especially given that those with remaining funds estimate they have only 11 years of money left on average -- far short of the 20-plus years many will spend in retirement"  MORE >>

"[M]any workers still lack access to employer-provided retirement plans, have minimal savings, and face growing tradeoffs between saving for retirement and meeting basic financial needs ... [F]ew people contribute to IRAs on their own.... [A]lmost half of American workers do not participate in any employer-sponsored retirement plan, and that percentage has held steady for nearly half a century."  MORE >>

"By taking an integrated approach to managing health and retirement programs, employers can unlock meaningful tax efficiencies across health savings accounts (HSAs), flexible spending accounts (FSAs), transportation benefits, and retirement plans like 401(k)s and 403(b)s. The real driver of these savings? Increasing employee participation in tax-advantaged plans."  MORE >>

"In all four of its amicus curia briefs, the DOL has explained its position that, where a plan allows forfeitures to be used to offset employer contributions or pay plan expenses, there is no breach of fiduciary duty where a plan fiduciary decides to use forfeitures to offset employer contributions."  MORE >>

"By shifting many administrative and fiduciary duties to a pooled plan provider (PPP), employers can spend less time managing plan mechanics and more time focusing on their business and employees. That said, a PEP does not eliminate employer responsibility entirely ... [It] creates a clearer, more efficient division of responsibilities that often offers employers greater peace of mind."  MORE >>

"[A]rtificial intelligence (AI) and blockchain are seen as major catalysts in plan administration and participant experience. AI is anticipated to enhance personalized financial guidance, predictive modeling, and customized communications."  MORE >>

"[T]he confidence boost tied to having an advisor is actually most pronounced among lower-balance savers. In other words, professional guidance may be especially impactful for younger employees who are still in the early stages of building wealth. That matters, because Gen Z is already engaging with retirement saving."  MORE >>

"The risk that receives the least amount of attention is likely a cognitive decline ... Studies have shown that financial literacy peaks in the mid-50s and declines steadily thereafter, even among those without diagnosed cognitive impairment. The ability to evaluate complex financial investment decisions, recognize fraud, and manage tax-efficient withdrawals diminishes exactly when the stakes are the highest."  MORE >>

"[T]he court held that the plaintiff had Article III standing to seek plan reformation under Section 502(a)(2). The court emphasized that the plaintiff plausibly alleged a concrete injury -- reduced monthly benefits -- and that reformation of the plan's actuarial assumptions could redress that injury.... The court reaffirmed that Section 502(a)(2) claims are inherently representative and must be brought on behalf of the plan. Enforcing an individual-only arbitration clause would therefore operate as a prospective waiver of a statutory remedy[.]" [Duke v. Luxottica U.S. Holdings Corp., No. 24-3207 (2d Cir. Feb. 5, 2026)]  MORE >>

"Here is an example showing the results of comparing seven plans for a small business. The owner was willing to spend on staff an amount equal to 5.0% of their total combined payroll.... The results show the differences that can be obtained from various plan designs."  MORE >>

"Social Security constitutes half of income for the typical older adult. Income from retirement plans ... represents about a fifth of income on average.... The typical employee contribution rate to a defined contribution savings plan is between five and six percent and the typical employer contribution rate is just under three percent.... Retirement savings represent about a quarter of financial assets on average for the typical working adult, while home equity represents about a third."  MORE >>

"That estimate is contained in [Fidelity's] 2026 State of Student Debt study, which shows that, under Fidelity’s student debt repayment program, participants receive an average of $1,900 in employer contributions based on their student loan payments. ... [T]he average student loan borrower takes more than 10 years to repay their loans – if that individual received an employer contribution through the program for 10 years, that $1,900 annual contribution could grow to nearly $200,000 at retirement age."  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 >>

"Recordkeepers are expanding into wealth management, managed accounts, and participant-level services -- areas once reserved for advisors.... These dynamics risk becoming co-option -- where advisors, dependent on recordkeepers for referrals, technology, and even marketing support, lose their independence. When that happens, plan sponsors and participants may face higher costs, less transparency, and weaker fee negotiations."  MORE >>

"All baby boomers will be older than 65 at the start of the next decade ... That's a big pipeline of retirees, many who will be seeking guidance on managing their retirement nest egg. And it creates an opportunity for you to position your practice as the go-to source for comprehensive retirement income solutions and develop a more loyal and committed client base."  MORE >>

"While year-end is a natural checkpoint, reassessing your retirement plan at the start of the year offers several advantages:[1] Tax efficiency ... [2] Regulatory compliance ... [3] Employee engagement ... [4] Strategic alignment."  MORE >>

"[T]he department argues that the district court correctly held that the plan sponsor did not breach its fiduciary duties of prudence and loyalty because the plaintiff's argument only included a bare allegation that forfeitures were not allocated to pay plan expenses, even though the plan at issue provided for fiduciary discretion over that decision. Instead, the brief explains how a prudent and loyal fiduciary might have concluded that it was important to ensure that plan participants received the contributions expressly promised by the plan in a timely manner." [Barragan v. Honeywell Int'l, Inc., No. 24-4529 (D.N.J. Aug. 18, 2025; on appeal to 3d Cir. No. 25-2509)]  MORE >>

"Many households have complicated financial situations and may own properties, businesses, collectibles and other assets that they would like to use for retirement, but these assets may not be easily valued or artificially 'converted' into income. If you have any of these types of assets, you may wish to ... use the Actuarial Financial Planner workbooks to value your hard-to-value assets and include them in your Funded Status calculation."  MORE >>

"Projecting the growth of benefits based on one rate and discounting them based on another rate creates a wild fluctuation in the liability for those benefits ... The FASB Emerging Issues Task Force (EITF) recommended that benefits that meet the strict definition of a Market-Based Cash Balance plan should be valued by setting the discount rate to be equal to the assumed interest crediting rate. This simple-sounding fix effectively eliminates the issue and allows benefits to be valued at the account balance with appropriate adjustments for specific, and usually minor, benefit provisions[.]"  MORE >>

"Where district courts have ruled on motions to dismiss forfeiture-related claims, to date they have largely sided with defendant-employers ... [F]orfeiture claims have been dismissed in at least 25 cases and have been allowed to survive in at least six cases.... Appeals are currently pending in the Third, Eighth, and Ninth Circuits, and Bank of America recently requested permission for a Fourth Circuit appeal. The Ninth Circuit is poised to be the first to rule."  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 >>

"The Mississippi Legislature reintroduced legislation that would establish a state-run program to offer Roth individual retirement accounts and other after-tax contribution vehicles to provide coverage for private sector workers who lack access to retirement plans through their employers."  MORE >>

"[S]tudents, nonresident aliens, and employees eligible to other plans can still be excluded from the plan, as long as the exclusions are applied consistently to all employees who still meet each category.... Employer contributions not required, but permitted/LTPT inclusion in the testing sometimes required, sometimes permitted.... Former LTPT employees and vesting: nobody said life would always be fair.... Mistakes happen: correcting improper exclusion of LTPT employees.... How will the auditors test LTPT administration?"  MORE >>