"The most important part of the opinion probably will be its rejection of the 7th Circuit's 'exclusive focus on investor choice,' which reflects a decisive holding that it is not enough to insulate sponsors from liability to identify well-designed options that employees could have chosen. Rather, sponsors have an ongoing duty to protect employees from making poor investment choices by monitoring and removing those choices from the menu of the plan." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

"Citing Tibble, the Court stated that the mere availability of adequate investment options does not categorically prevent ERISA plaintiffs from stating a plausible claim for breach of the duty of prudence ... In evaluating whether the plan participants' allegations were sufficient to survive a motion to dismiss, the Court applied well-settled pleading rules and did not adopt an ERISA-specific standard." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

"When assessing the potential for fiduciary liability, one can divide the risks into two categories: conflicts-of-interest and failure of process. In neither case is poor performance itself seen as a stand-alone risk, but it often precipitates an action in one of these two categories." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

"Among the financial challenges of the pandemic and the ongoing fight for talent in today's market, employees are demanding more support from employers than ever before. Almost 80% said it was important that their employer offers financial wellness benefits, and over 70% say these benefits are even now more critical than pre-pandemic.... 68% would prioritize having better financial wellness benefits above an extra week of vacation."  MORE >>

"While it's fascinating to watch, the inherent volatility of meme stocks flies in the face of the savings strategies promoted by most plan sponsors. However, the trend may provide an unexpected benefit by giving plan sponsors a chance to educate employees (especially younger ones) about saving and investing in general. Capitalize on the curiosity, and you may transform one-time meme stock pickers into long-term savers."  MORE >>

"There will be a continued emphasis on financial wellness in 2022 ... Student loan debt ... represents a barrier to financial wellness and retirement savings.... [M]anaged accounts, which when incorporated into a retirement plan design, can provide a more tailored approach for investors, particularly as they enter the later stages of their careers.... In an industry challenged by fee pressure, it may make sense to consider adding collective investment trusts to your arsenal of offerings."  MORE >>

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Local 408 International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America Pension Plan.... The Local 408 Plan became insolvent in September 2021.... PBGC's approval of the SFA application enables the plan to restore all benefit reductions caused by the plan's insolvency and to make payments to retirees to cover prior benefit reductions.... The plan will receive $100.5 million in SFA[.]"  MORE >>

"The plan should receive its SFA lump sum payment by March 20 ... Retirees who had their benefits cut should begin getting repaid as early as three months after the PBGC makes the SFA payment to the plan. Over 90 percent of the plan's retirees have been receiving reduced benefits since the plan became insolvent. Forty-four percent of the Local 707 retirees saw their benefits reduced by more than 50 percent."  MORE >>

"[F]or households that are projected to have a retirement deficit, combining two proposals -- the [Automatic Contribution Plan/Arrangement (ACPA)] provisions and enhanced Saver's Credit -- would reduce retirement savings shortfalls by 17% to 26%, depending on race."  MORE >>

"Even if stock market returns end up being disappointing this year, however, pension plans potentially have one other thing going for them. States, and to a lesser extent localities, are flush right now, thanks to billions in aid from Washington and strong revenue collections. Many are choosing to use some of their extra cash to pay down longstanding pension debt."  MORE >>

"It is Super Bowl time which, for some of us, means that the new 5500 for the Bert Bell/Pete Rozelle NFL Player Retirement Plan is out and we get a better idea of how much Joe Burrow really has in common with a Cleveland Iron Worker."  MORE >>

"On the heels of an active FY 2020, the SEC continued to closely scrutinize and, when it deemed appropriate, take action against issuers for allegedly deficient perks-related disclosures. Here's a boiled-down look back at three significant cases from the last year."  MORE >>