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Managed Accounts and Investment Advice: What Fiduciaries Should Know

"Recently, multiple lawsuits have been brought against large recordkeepers (e.g., TIAA, Empower, Fidelity) and other service providers that offer investment advice and managed account products to retirement plan participants. These lawsuits serve as a reminder that investment advice is fiduciary advice that plan fiduciaries must review and monitor regardless of how it is offered (in person, phone, computer program, website module)."

SECURE 2.0 Update: Final Roth Catch-Up Regulations, More Decisions to Make

"The deemed approach is the least disruptive to employees, and it affords employers greater flexibility in correcting operational mistakes related to the Roth catch-up mandate.... If the deemed approach is used, [employers should discuss with their] recordkeeper and payroll provider whether it will apply when an employee's contributions reach the 401(a)(30) limit, or only when pre-tax contributions reach the limit."

New Flurry of Litigation Challenging Wellness Programs

"More than one dozen class action lawsuits were filed this year challenging wellness programs that increased group health plan premiums for participants who use tobacco.... [These] lawsuits largely stem from alleged deficiencies in the [reasonable alternative standard (RAS)] requirement or its implementation, including failing to provide the notice of a RAS in all plan materials, communicating misleading information regarding the RAS, failing to provide a RAS altogether, and failing to make the full wellness program reward available to individuals who complete the RAS."

Missouri's Earned Paid Sick Leave Law Repealed

"The repeal is final: No further accrual or usage requirements under Proposition A after August 28. Employers who had introduced compliance-focused paid sick leave may [after August 28] [2] Integrate it into existing paid leave; [2] Eliminate it entirely, or [3] Re-position in a policy aligned with your goals. Unused paid sick time hours accrued before August 28 can typically be used through that date. Beyond that, usage is discretionary -- you may want to clarify this in a written policy."

Paid Sick Leave Law Updates: Missouri and Nebraska

"HB 567 remains on Missouri Governor Mike Kehoe's desk waiting his signature. Should Governor Kehoe sign HB 567 ... the repeal of Missouri's paid sick leave law will take effect on August 28, 2025.... [T]he bill contains no provision for immediate or retroactive application.... The [Nebraska] HFWA's definition of 'employee' now excludes ... individual owner-operators, independent contractors, seasonal or temporary agricultural employees, and any person under the age of 16.... [T]he definition of 'covered employers' now includes only employers with 11 or more employees."

The 'One Big Beautiful Bill Act, 2025' Makes Major Employee Benefits Changes

"[E]mployers should: [1] Consider design changes to HDHPs for low- or no-deductible telehealth services and direct primary care services. [2] Review transportation fringe benefit plans to address the exclusion of bicycle commuting reimbursements and inflation adjustments. [3] Determine whether to revise educational assistance programs to incorporate the inflation-adjusted amount. [4] Decide whether to amend their DCAPs to allow for increased contributions. [5] Consider whether to establish a plan to make contributions to the new 'Trump Accounts.' [6] If subject to executive compensation limits ... consider changes to compensation structures to avoid tax or loss of deduction."

Plan Sponsor Considerations for In-Plan Annuity Offerings

"This article ... explain[s] the safe harbor requirements for annuity offerings, which vary depending on the type of annuity selected and the manner in which it is offered.... [T]he decision to offer (or not) an annuity product is subject to the general fiduciary duties in ERISA ... Additional fiduciary considerations arise that vary depending on the type of annuity offered and how it is offered."

Employer Guidance on Revising Evidence of Insurability Practices

"The [DOL] has rolled out an initiative over the last two years to investigate insurance companies' practices surrounding Evidence of Insurability (EOI) for life insurance benefits. These investigations have resulted in several settlements, which provide guidance for other insurance companies and employers to avoid similar legal consequences."

New Nonenforcement Policy for Portions of the Final Mental Health Parity Rules

"The comparative analyses of a plan's nonquantitative treatment limitations are statutorily required under the MHPAEA, so plan fiduciaries should continue to prepare comparative analyses, keep them updated, and be ready to provide them upon request by regulators and participants. Plan fiduciaries should continue to ensure nonquantitative treatment limitations are applied no more restrictively for MH/SUD benefits than for M/S benefits in the same classification."

Supreme Court Unanimously Upholds Bare-Bones Pleading of ERISA Prohibited Transaction Claims

"This holding will impact ERISA breach of fiduciary pleadings and procedural practice. Defendants' ability to obtain a dismissal of prohibited transaction claims under Rule 12 will be severely limited. However, the Court points defendants to another procedural mechanism to curtail unfettered ERISA fiduciary duty litigation: Rule 7(a) of the Federal Rules." [Cunningham v. Cornell Univ., No. 23-1007 (S.Ct. Apr. 17, 2025)]