"Although this case is somewhat unique in finding a breach of duty of loyalty but not prudence, it serves as a reminder to Plan fiduciaries that, even where no monetary damages are awarded, a court can still award significant equitable relief to remedy a breach of ERISA fiduciary duty." [Spence v. Am. Airlines, Inc., No. 23-0552 (N.D. Tex. Sep. 30, 2025)]  MORE >>

"The case will almost certainly focus more attention on the proxy voting policies and procedures of ERISA plans, and the extent to which the managers of funds in which ERISA plans invest are attempting to pursue ESG objectives through proxy voting and other types of shareholder activism. However, it appears unlikely that the case will prompt a wave of ERISA class actions by plaintiffs' attorneys in the absence of a coherent nexus between a fund manager's consideration of ESG factors and a loss to the plan." [Spence v. Am. Airlines, Inc., No. 23-0552 (N.D. Tex. Sep. 30, 2025)]  MORE >>

"Currently, all critical requirements for retirement plans, including Form 5500 deadlines, remain unchanged during the shutdown. However, due to limited staffing, processing times may be slower than usual. [The PBGC] remains open and operational ... All regulatory and research activities are on hold, which may delay updates to provisions within SECURE 2.0. Routine [DOL] investigations, audits, and enforcement actions have also ceased and will not resume until the government reopens.... [T]he announcement of Cost-of-Living Adjustments is likely to be delayed."  MORE >>

"The Emergency Relief for Federal Workers Act [S 2966] would clarify that lapses in appropriations qualify federal workers to take a hardship withdrawal from the federal government's 401(k)-style retirement savings program and eliminate the associated 10% penalty in those instances."  MORE >>

"Fiduciaries cannot outsource prudence. ... If anything, relying on these tools raises the stakes for 401k plan fiduciaries. The potential for biased outcomes, opaque algorithms, and data privacy breaches now sits squarely within the plan sponsor’s oversight responsibility. ... With AI advice tools embedded in recordkeeping and advice platforms, what due diligence steps must fiduciaries take to evaluate transparency, mitigate bias, and stay compliant under ERISA?"  MORE >>

"The Portability Services Network LLC reported ... that 20,997 plan sponsors have elected to adopt automatic portability, as of September 30. The number reflects a 1,225-plan (6.2%) increase from the 19,772 plans reported as of June 30. Portability Services Network is a clearinghouse that facilitates the automatic transfer of small 401(k) balances among the six recordkeepers that own the network[.]"  MORE >>

"28% of rollover investors stayed in cash for at least 12 months, with minimal changes after the first three months following the contribution.... The median job switcher saw a 10% increase in pay, but a 0.7 percentage point DECLINE in their retirement saving rate when they switched employers.... [O]nly an average of 15.3% gained a plan upon job change. while an average of 20% lost access to a plan via work."  MORE >>

"William Bengen now says a withdrawal rate of 4.7% may be more appropriate. Retirees who can cut back a little during rough market years tend to do better than those who consistently withdraw the same amount, no matter what happens. Another withdrawal strategy is to align annual withdrawals with remaining portfolio value, thereby adapting to market fluctuations."  MORE >>

"There are about 31.9 million 'forgotten' 401(k) accounts, totaling about $2.1 trillion, according to a recent report from Capitalize.... Capitalize's estimate is likely overestimated. Or more precisely, they inappropriately include accounts left behind at a previous employer as 'forgotten.' "  MORE >>

"Access to workers' nest eggs has long been the goal of the PE industry, and it has lobbied hard for this change. It is more important now than ever. Private equity's performance has been mediocre since the financial crisis and has deteriorated notably since mid-2022.... The PE industry is looking to Trump's EO to make workers' retirement savings available to bail them out.  ... The results [of a recent survey] indicate that the EO will likely disappoint the PE industry."  MORE >>

"Nearly half of employees consider equity compensation ... a must-have benefit for a new job and view it as a critical tool to help achieve their retirement goals, according to a recent survey ... 37% of employees said equity compensation could help them learn more about investing, 32% said they could alleviate financial stress and another 32% said they could boost employee morale. Most notably, nearly 40% of employees said equity compensation could help them build or increase their wealth."  MORE >>