"Criteria for Mergers Involving Plans that Received SFA

• What are the eligibility requirements for a merger involving a plan that received SFA?
• What conditions apply after the merger?
• May plans request a waiver of any conditions beyond those permitted in § 4262.16(f)(4)?

"Request for Approval

• Where should a plan representative file a request for approval?
• When should a request for waiver of one or more conditions be submitted?
• May plans confer with PBGC before submitting a request for approval?
• When must a plan request approval of a merger involving a plan that received SFA?
• If plans want to adopt an alternative allocation method for the merged plan, when should that request be submitted?
• What withdrawal liability methods may a merged plan use to comply with § 4261.16(1)(3)(iv) and (v)?
• How does the example of a compliant alternative allocation method work?
• How does the example alternative allocation method satisfy the requirements of § 4262.16(f)(3)(iv) and (v)?
• Will adoption of the example alternative allocation method satisfy the risk of loss standard?
• May plans propose a different alternative allocation method?"

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"Effective March 17, 2025, the [DOL] finalized several changes to its Voluntary Fiduciary Correction Program (VFCP). The DOL highly recommends that all late deposits of salary deferrals or loan payments be corrected under the VFCP and monitors these errors that are required to be reported on Form 5500 filings.... Plan sponsors should be aware that in connection with these changes, the DOL announced that fiduciaries have an obligation to implement a program to monitor, on at least a quarterly basis, that withholdings of deferrals and loan payments are timely deposited."  MORE >>

"To position your plan consistent with the proposed regulation, plan fiduciaries should ... [1] Review your Investment Policy Statement (IPS) to confirm it contemplates the six safe harbor factors; [2] Document your investment selection process with specificity -- meeting minutes, adviser reports, benchmark analyses, and fee comparisons mapped to the six factors; [3] Engage a qualified investment advice fiduciary when evaluating complex or alternative investment options and critically review their recommendations; and [4] Monitor for DOL final guidance[.]"  MORE >>

"[T]he safe harbor test does not completely eliminate a fiduciary’s risk if they include alternative investments in ERISA-governed plans. In addition to the possibility of lawsuits, fiduciaries must also navigate the higher fees commonly associated with alternative investments, as well as the liquidity and valuation challenges inherent in these assets."  MORE >>

"The U.S. 8th Circuit Court of Appeals dismissed a complaint against Wells Fargo, finding that the plaintiffs -- including former employees and plan participants -- lacked standing to sue over the alleged improper use of forfeited funds. The decision marks the first time an appellate court has ruled on this issue, representing a significant victory for plan sponsors as several complaints await decisions across multiple appellate courts." [Matula v. Wells Fargo & Co., No. 25-2441 (8th Cir. May 12, 2026)]  MORE >>

"A federal district court issued a mid-trial ruling in favor of the defendants regarding their use of forfeitures ... [This] case is one of nearly 100 lawsuits filed in the last few years challenging how 401(k) plan sponsors and fiduciaries use the unvested contributions of former plan participants, commonly referred to as 'forfeitures.' " [Stephan v. Trader Joe's Company, No. 25-10212 (D. Mass. May 8, 2026)]  MORE >>

"EBSA's goals as described by [Assistant Secretary of Labor Daniel Aronowitz] are consistent with potential Congressional action that would curtail the litigation risks and eliminate the regulatory burdens that have hindered plan sponsors and fiduciaries. Proposed legislation, for example, would end the [DOL's] practice of entering into common interest agreements with plaintiffs' law firms; require investigations to conclude within a reasonable timeframe; and reverse plaintiff-friendly Supreme Court precedent for ERISA prohibited transaction claims, including claims that an ESOP overpaid for employer stock."  MORE >>

"[T]he Form 5500 Filing Simplification Act [HR 7362] was introduced on February 4, 2026. Among other proposed changes, the legislation would extend the Form 5500 filing deadline by nearly three months. For calendar-year plans, the deadline would move from July 31 to October 15."  MORE >>