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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."

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]."

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. "

Can Knowledge Empower Women to Save More for Retirement? (PDF)

"This study assesses the role of financial knowledge and empowerment in contributing to the gender gap in savings. [The authors] evaluate the effects of financial education delivered to women in the workplace ... [and] estimate that a multi-media education effort increased participation in retirement savings by 2.6 percentage points, closing the gender gap by more than half. This result is partially explained by pre-existing trends."

What Empower's Purchase of Pru Retirement Business Means for Advisers

"What is the value of an adviser to record keepers? The overwhelming answer is that advisers sell the plan. They represent a sales force of almost 300,000 with personal relationships with plan sponsors. Providers do not have to recruit, manage or pay these advisers directly. Everything else is ancillary."

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)

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."

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)]

Empowering America's Financial Journey -- Government Sector Study

"The study analyzes the behavior of approximately 1.55 million active state and local defined contribution participants with Empower as the recordkeeper.... Government participants ... are saving an average of 6.4% of their salary in their workplace retirement plan, up from 5.9% two years ago.... About half of government participants utilize professional management.... Engaged government workers have savings rates 90% higher than unengaged participants."