"The proposed regulation establishes a process-based safe harbor for plan fiduciaries when they select designated investment alternatives. It identifies a non-exhaustive list of six factors for a plan fiduciary to objectively, thoroughly, and analytically consider and make determinations about when selecting designated investment alternatives. When a plan fiduciary does so following the process described in the proposed regulation with respect to any of the six factors, its judgment regarding the factor or factors is presumed to have met the fiduciary's duties under section 404(a)(1)(B) of ERISA."  MORE >>

"At its core, the Investment Selection Rule is asset-neutral and focused on reinforcing the long-standing ERISA fiduciary process standard that governs how plan investment decisions are made....This is guidance you can actually use -- in committee meetings, in documentation, and in provider oversight. The rule provides fiduciaries with a clearer roadmap for navigating an increasingly complex investment landscape."  MORE >>

"The new law creates the Utah Retirement Plan Exchange, a program through which eligible private-sector employers can easily set up a retirement plan through the exchange or adopt an auto-IRA program to provide coverage for their employees. The exchange will walk employers through a set of questions that guide them along a pathway to establishing the retirement program that best fits their situation."  MORE >>

"A federal judge has dismissed a lawsuit that accused Fidelity of letting certain 'retail class' investors in its Fidelity Government Money Market Fund lose millions of dollars a year to high expenses when they're eligible for lower-cost 'premium' shares. The complaint alleged Fidelity and fund officials let some customers holding the money market mutual fund's retail share class (SPAXX) 'needlessly incur higher expenses' even when eligible for its lower-expense but otherwise identical premium share class (FZCXX)." [Davis v. Fidelity Management & Research Co LLC, No. 24-8142 (S.D.N.Y. Mar. 25, 2026)]  MORE >>

"The court embarked on a learned exploration of the application of the [DOL's regulation defining plan assets] to distinctions between debt and equity that even addressed the nuances surrounding notes as compared with trust certificates. And the court also addressed ... the question of whether, in the face of plan assets, a service provider might have fiduciary authority. A possible object lesson here is that the fundamental plan-assets analysis, however arcane, may really matter." [Powell v. Ocwen Financial Corporation, No. 18-1951 (SDNY June 1, 2023)]  MORE >>

"In the last few years, the bigger shift hasn't been 'equity vs. no equity' as much as how companies use equity compensation. Private companies are increasingly using Restricted Stock Units (RSUs) in later stages and mixing RSUs with options, rather than only options. The shift in equity compensation usage is prompting questions from payroll and benefits professionals because of the impact on the company's 401(k) plan."  MORE >>

"There are few, if any, other industries in which costs have declined as precipitously as in defined contribution.... As a result of the hyperfocus on fees, record keeper service has deteriorated, and most wealth advisors and their broker/dealers stayed away from a high liability, low margin business.... But the upside of this race to the bottom has been the focus on the participant ... The DC platform has become the hub for providing advice on all aspects of a participant's financial well-being, including selecting the right benefits. "  MORE >>

"Insurance agents, annuity sellers, brokers and other sales-oriented professionals providing one-time rollover or product recommendations ... are no longer treated as ERISA fiduciaries.... To be considered a fiduciary, an advisor must provide advice on a regular basis, pursuant to a mutual agreement, that serves as a primary basis for investment decisions and is individualized to the client. Critics say that framework breaks down in a world dominated by rollovers and episodic advice."  MORE >>

"Most older Americans want Congress to 'save Social Security (and Medicare).' Many of those individuals believe (hope) that Congress will not reduce their benefits, but will, instead, save the system through increased revenue, from some source that will presumably not negatively affect them. And maybe this will be what happens, or maybe not. It is arguably more prudent and conservative to assume some level of benefit cuts will occur than to assume none."  MORE >>

"EBSA's explicit focus on removing barriers to mental health and substance use disorder benefits and on surprise billing, together with added emphasis on cybersecurity and selected plan investment conflict areas, makes clear that plan sponsors and service providers should be prepared for a DOL investigation in these areas.... [T]here are several practical considerations for plan sponsors and service providers that can make an investigation quicker and less painful."  MORE >>

"The number of shares you can sell depends on both individual limits and the total level of participation. If you have held the shares for any period before the tender offer and sell the stock at a premium over your company's current internal valuation, the tax treatment for that part of the gain is uncertain.... Advisors often recommend selling shares to diversify. However, the potential downside to selling shares now is that it could take away from much greater gains later in any IPO."  MORE >>