"While the majority of ESOP litigation in recent decades has dealt with operational issues, by far the most important and costly litigation has focused on prudence issues related to valuation. [FAB 2026-01] suggests that the EBSA will take a less aggressive stance on this going forward."  MORE >>

"FAB 2026-01 reflects the DOL's position that fiduciary decisions should be firmly grounded in participants' financial interests. ESG-related considerations may raise loyalty concerns if they are not clearly tied to those interests.... EBSA's stated focus on process reinforces the importance of well-documented fiduciary decision making.... EBSA signaled that it will take into account ongoing efforts to establish acceptable ESOP valuation standards before advancing certain investigations."  MORE >>

"New DOL guidance indicates that state laws relating to ESG investments would avoid ERISA preemption, creating additional legal risk to plans that offer ESG investments. [Technical Release 2026-01] sets forth the DOL's position that proxy advisors can be fiduciaries subject to ERISA. Management of shareholder rights exercises discretion over plan assets and meets ERISA's definition of a fiduciary. The DOL is following the DOL's 1975 five-part test for determining whether providing investment advice for a fee renders a person a fiduciary. The existence of a contract between a plan and a proxy advisory firm for investment advice services may be a relevant factor in determining whether this test is met."  MORE >>

"While the proposed regulation was prompted by an Executive Order that focused on increasing access to investments in alternative assets within defined contribution retirement plans, it is applicable to almost all plan investment decisions. Plan fiduciaries need to be aware of the DOL's guidance in the proposed regulations regardless of whether alternative assets will be included in a plan's investment lineup.... The proposed regulation sets forth a process-driven, so-called 'safe harbor' that offers plan fiduciaries substantial -- but not absolute -- procedural defenses against litigation."  MORE >>

"Strategic Roth conversions during the gap years before required minimum distributions (RMDs) begin at age 75 can keep Medicare premiums at the base rate of $202.90 per month for life, while staying above the $218,000 joint modified adjusted gross income threshold triggers IRMAA surcharges of up to $9,240 per year for couples. Retirees with large traditional 401(k) balances should execute conversions before RMDs begin using the two-year MAGI lookback window to avoid stacking conversions with future Social Security income, as SECURE 2.0 delays RMDs until age 75 for those born after 1959."  MORE >>

"Sponsors are adopting more participant-friendly plan features and focusing on driving outcomes. According to industry surveys, most plans are not just meeting required changes but proactively enhancing plan design, offering higher matching contributions, automatic enrollment, and automatic escalation. Investment menus are trending toward low-cost index funds and collective investment trusts, which offer fee advantages and diversified options. The Department of Labor’s proposed safe harbor for evaluating alternative asset classes; including private equity and cryptocurrency; is asset neutral but demands rigorous process and documentation."  MORE >>

"Early indications point toward a $500 increase to the 401(k) contribution limit for employees next year—half the amount of the $1,000 boost given for 2026."  MORE >>

"As an organization grows, the retirement plan it started with RARELY remains the same. Growth introduces a predictable shift in operational complexity, regulatory requirements, and fiduciary risk.... Across all three stages, the most important thing to understand is this: you can delegate the work of the plan, but you can never delegate the responsibility for its oversight."  MORE >>

"The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies decreased by three percent in March 2026 to 104 percent as a result of a decrease in equity returns partially offset by an increase in discount rates. As of March 31, 2026, the estimated aggregate surplus of $65 billion USD decreased by $46 billion USD compared to a surplus of $111 billion USD measured at the end of February[.]"  MORE >>

"Alaska's government employees do not participate in Social Security, which leaves a significant gap in retirement benefits. Most of the state's government workers participate in the Alaska Supplemental Annuity Plan (SBS-AP), which more than replaces the benefits they would have received under Social Security. School employers, however, do not offer this benefit, leaving teachers at significant risk of inadequate savings for retirement. Senate Bill 55 (SB 55) aims to address this gap by making the same SBS plan available to teachers through school employers."  MORE >>

"You've planned for retirement -- saved diligently, mapped out your Social Security strategy and thought through market risks. But what happens if one day, you simply can't manage your money anymore? ... [1] Name a trusted contact on your financial accounts ... [2] Durable power of attorney ... [3] Health care power of attorney ... [4] HIPAA authorization ... [5] Last will and testament ... [6] Make sure your family knows your team."  MORE >>

"Trump Accounts are a new form of traditional individual retirement account (IRA) that the 2025 reconciliation law (P.L. 119-21) created for the benefit of children. Savers will be able to contribute to Trump Accounts starting on July 4, 2026.... Anyone can contribute to a child's Trump Account, although individual contributions during the growth period are not tax-deductible for either the contributor or the beneficiary. Employers can contribute up to $2,500 (adjusted for inflation after 2027) tax-free to the Trump Accounts of employees or their dependents (amount is per employee, per year)."  MORE >>

"Aronowitz testified that fiduciaries are 'paralyzed with very rational fears' about litigation, and this 'stifles innovation in plan design' to the detriment of plan participants. Many of these lawsuits amount to 'unfair, hindsight second guessing,' he argued. He added that many fiduciary meetings focus on avoiding litigation rather than helping their participants."  MORE >>

"Having surveyed the case law of our peer circuits, we find the following nonexhaustive list of factors useful to consider when determining whether a plan is a bonus payment plan: [1] whether the plan contemplates universal employee participation or imposes heightened eligibility requirements, [2] whether the plan is funded with money that would otherwise be immediately payable to the employee, [3] whether the plan is actually funded or involves phantom investments, [4] whether employees can unilaterally postpone payments until termination or beyond, [5] whether the plan is presented as a vehicle for obtaining retirement income, and [6] whether firm performance impacts plan payments.... We are convinced that the WealthChoice Award program comfortably qualifies as a bonus payment plan.... [We] affirm the district court's order granting summary judgment to Merrill Lynch because the WealthChoice Awards program does not fall within the protections of ERISA." [Milligan v. Merrill Lynch, No. 25-1385 (4th Cir. Apr. 17, 2026)]  MORE >>