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Schlichter Firm Files Broad Fiduciary Complaint Against Empower

"This is a suit against the provider, not the plan sponsor. The complaint alleges that Empower -- which functioned primarily as plan recordkeeper (an administrative, not a fiduciary function) -- was nevertheless a fiduciary.... Casting the provider as defendant allows plaintiffs (and their attorneys in this class action) to sue (and claim relief/damages with respect to) all the plans Empower is recordkeeper for, increasing (by orders of magnitude) the dollar value of this lawsuit." [Williams‑Linzey v. Empower Advisory Group, LLC, No. 25‑14660 (D.N.J. complaint filed Aug. 15, 2025)

Empower Accused of Pushing Excessive Costs, Underperforming Investments

"According to the filing, Empower leveraged its role as recordkeeper for employer-sponsored retirement plans to harvest confidential participant data and then target individuals, particularly those nearing retirement or with large balances, for sales pitches. The plaintiffs allege sales representatives falsely portrayed Empower's 'managed account' program ... as the only recommended investment option."' [Williams‑Linzey v. Empower Advisory Group, LLC, No. 25‑14660 (D.N.J. complaint filed Aug. 15, 2025)

Empower Retirement Urges Congress to Enact Disaster Relief for Retirement Savers

"Empower Retirement is asking the U.S. Department of Treasury and the [IRS] for regulatory guidance and relief packages for Americans saving for retirement.... Empower is asking to allow: [1] Retirement plan participants to withdraw retirement savings early without a 10 percent tax. [2] Qualified disaster distributions in income over three years. [3] Withdrawals up to $100,000 from their qualified retirement plans with the income tax for the withdrawal spread out over three years."

Did Empower's Cross-Selling Cross the Line? Why Fiduciaries Should Monitor Recordkeeper Marketing

"While the GAO and the SEC have expressed concern about cross-selling to retirement plan participants ... there is no body of case law specifically holding that plan data is a plan asset or that cross-selling violates ERISA. Further, courts have blocked enforcement of the [DOL's] rollover advice rule that makes rollover advice a fiduciary activity if there will be an ongoing advice relationship after the rollover. Faced with these challenges, plaintiffs have cast a wide net in their attempt to recover from Empower." [Williams‑Linzey v. Empower Advisory Group, LLC, No. 25‑14660 (D.N.J. complaint filed Aug. 15, 2025)

Sen. Cassidy Outlines Proposals to Empower Independent Workers, Ensure Access to Portable Benefits

"In this white paper, Cassidy is proposing to: [1] Establish a safe harbor for companies, so they can offer portable benefits to independent workers without the fear of misclassification lawsuits. [2] Give workers clarity and consistency by instituting a single employment test under federal law. [3] Increase health care coverage options for independent workers.... [4] Empower independent workers to participate in retirement plans, like pooled employer plans and single employee pension IRAs, that are already available under federal law."

Empower Comment Letter to DOL on Retirement Security Proposed Rule (PDF)

"[T]he breadth of the Proposed Rule could prohibit activities -- like sales conversations and plan sponsor investment conversations -- that have traditionally not been considered fiduciary activities. By assigning fiduciary status to plan sales, the Proposed Rule will reduce the flow of information to employers looking to sponsor retirement plans. This may reduce plan formation and is contrary to Congressional intent.... Given these significant impacts, the Department should withdraw the Proposed Rule. "

Great-West, Empower Targeted in Latest 401(k) Fee Suit

"According to the complaint, filed Jan. 14 in the U.S. District Court for the District of Colorado, Great-West's retirement plan business -- branded Empower Retirement -- receives kickbacks from the mutual funds it offers to 401(k) plans as part of an impermissible 'pay-to-play scheme' that drains money from plan participants' retirement savings.... If recent appellate court decisions are any indication, the participants bringing this suit may face an uphill battle in their quest to treat Great-West as a fiduciary under [ERISA]."

Insurers Should Use Standardized Identifiers for Provider Networks to Empower Consumers

"This article examines how the lack of standardized identifiers for provider networks creates many frustrations for consumers and other health care stakeholders. It also reviews the role that standardized identifiers and standards bodies play in developing seamless consumer experiences in other industries and the roles the could play in health care in assisting consumers and other stakeholders."

Legislative Package Would Empower Independent Workers to Access Portable Benefits

"Cassidy's Unlocking Benefits for Independent Workers Act establishes a safe harbor under federal law for companies that would like to voluntarily provide benefits.... Scott's Modern Worker Empowerment Act gives workers clarity and consistency by instituting a single employment test under federal law.... Paul's Association Health Plans Act ... [amends ERISA] to give small business employees, sole proprietors, and gig workers the ability to aggregate together and access health insurance through Association Health Plans (AHPs). "

Sweeping Fiduciary Breach Suit Targets Swiss Re, Empower

"The suit alleges that the Swiss Re Defendants 'failed to adhere to ERISA's basic principles, using flawed methodologies that led to a poor outcome; they chose expensive, underperforming investment options instead of lower-cost and better alternatives, and by charging the Plaintiffs grossly excessive recordkeeping fees.' " [Rudasill v. Swiss Re American Holding Corp., No. 25-1403 (S.D.N.Y. complaint filed Feb. 19, 2025)]