"New Securities Act Sections CFI 118.01 clarifies that, if a PEP meets the applicable requirements of (i) ERISA and (ii) the Internal Revenue Code, and otherwise meets the conditions of Section 3(a)(2) of the Securities Act of 1933, as amended (the 'Securities Act'), the Staff will not object if the PEP claims the Section 3(a)(2) exemption for any interest or participation in a 'single trust fund' even though multiple, unrelated employers participate in the PEP.... New Securities Act Forms CFI 126.45 provides that an employer participant in a PEP may register offers and sales of its own securities to employees on Form S-8."  MORE >>

"[The SEC Staff Statement] acknowledges that PEPs were intended to fit within the framework that allows retirement plan trusts to avoid being treated as investment companies -- and says that while they don't fit neatly in the single trust exemption, the staff won't object if an otherwise compliant ERISA-covered PEP treats itself as a single trust.... The SEC essentially signals that while the exemption doesn't quite fit, they aren't looking for PEPs to start registering. In other words, the rule didn't change -- but the SEC just made it usable for PEPs."  MORE >>

"[The SEC] issued informal guidance that effectively makes Pooled Employer Plans (PEPs) more scalable, cost-effective and competitive, strengthening their role as a major distribution and growth channel in the retirement plan market.... The guidance removes key structural barriers to PEP growth, enhances investment flexibility by providing access to Collective Investment Trusts (CITs), and expands the addressable market (especially small and self-employed employers)."  MORE >>

"Although public pension systems operate under state-law fiduciary rules rather than the federal regulation this rule would amend, the structure it establishes matters: it is the most detailed federal description to date of what a prudent investment selection process looks like, and state courts evaluating public trustee conduct will inevitably use it as a reference."  MORE >>

"Tennessee Gov. Bill Lee (R) on May 1 signed into law legislation that authorizes the state of Tennessee to be a non-bank custodian for Trump Account funds.... The legislation began as a means to lay the groundwork for a state-run retirement plan that would have provided coverage for those whose private-sector employers do not offer a retirement plan. But that language was replaced by the current wording."  MORE >>

"Pensions roared back in April on the strength of surging stock markets. Both model plans ... gained ground last month: Plan A improved 6% in April, ending the month up more than 5% for the year, while the more conservative Plan B gained 2% last month and is up more than 1% through the first four months of 2026."  MORE >>

"ERISA's fiduciary duty runs to participants -- to the 70-year-old who cannot recover from a 65% drawdown, to the 55-year-old who is five years from retirement and has no ability to time the market, to the 35-year-old who deserves to have their retirement savings managed with the same discipline that pension trustees apply. An asset that collapses in market stress, fails as an inflation hedge, and rests on 15 years of unreliable return data does not meet that standard."  MORE >>

"In its current form, the rule's safe harbor rests on a broken fee disclosure framework for collective investment trusts holding private market assets, extends asset-neutral treatment to cryptocurrency without any participant protections, and creates robust legal protections for fiduciaries without corresponding transparency for participants. Each of these gaps undermines the rule's participant-protection potential and should be addressed in the final rule."  MORE >>

"While the Morgan Stanley dispute is still pending in the Southern District of New York, recent developments in the Fourth Circuit have indirectly affirmed the conclusion of the [DOL Advisory Opinion 2025-03A] by establishing certain factors that the court used to determine ERISA versus non-ERISA status with respect to compensatory arrangements.... The Fourth Circuit established a non-exhaustive list of six factors to be considered when determining whether an incentive compensation program is an ERISA-exempt bonus plan." [Milligan v. Merrill Lynch, Pierce, Fenner & Smith, Inc., No. 25-1385 (4th Cir. Apr 14, 2025)]  MORE >>