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Fiduciary Liability Critical in Russell Investments ERISA Case

"A federal judge greenlighted complaints against Russell Investments Group LLC for allegedly causing plan participants to lose more than $100 million by placing them in its proprietary target-date funds, while dismissing complaints against the plan sponsor, Caesars Holdings Inc. The ruling indicates that plan sponsors can mitigate their fiduciary liability by delegating investment authority to a 3(38) fiduciary[.]" [Wanek v. Russell Investments Trust Co., No. 21-0961 (D. Nev. Sep. 25, 2025)]

The Russell Retirement Report: 401(k)s -- The Launch of Version 2.0

Excerpt: So what does the 401(k) plan version 2.0 look like? Perhaps more like a traditional defined benefit (DB) pension plan. DC plans are leveraging some of the strong characteristics of DB plans -- like automatic participation or asset allocation set by investment professionals. This report outlines what we view as 15 key features of the 401(k) plan version 2.0.

Multiple Employer Plans Move Into Spotlight

"MEPs were the first item identified in a recent report by the Savings and Investment Bipartisan Tax Working Group of the U.S. Senate Committee in Finance on increasing access to retirement plans.... Significantly wider acceptance of MEPs is unlikely unless employers can be certain that they are able to restrict their fiduciary responsibility to the selection and monitoring of the MEP provider, and no more than that."

'$20 Billion Club' Sees Record Plunge in Contributions for 2019, While Both Assets and Liabilities Peak Again

"Contributions to large pension plans plunged in 2019, nearly matching their lowest point in the past 15 years. Russell Investments began tracking a group of 20 publicly listed U.S. corporations with pension liabilities in excess of $20 billion in 2005. Dubbed the $20 billion club, these large plans saw contributions in 2019 similar to 2008 amid the global financial crisis. This year's analysis also reveals assets experienced a significant increase in 2019, rising 9.6% on average over the year."

$20 Billion Club's Record-Breaking Year

"The 20 members of the $20 billion club, representing 40% of the global DB liabilities among US-listed corporations, didn't just add on to 2016 contribution totals, they doubled them. They nearly tripled 2015 contributions. Combined with their highest recorded investment earnings, pension assets increased by around $85 billion for this group and offset a 45 bps drop in discount rates. This led to an average 5% improvement in funded ratio and $32 billion reduction in the funding deficit."

The Pension Plan Herd Has Broken Up

"Many investor groups are highly sensitive to peer-relative results and as a result, there can be a herd mentality in their chosen investment strategies. But large corporate pension plans in the U.S. have moved away from that mentality over the past ten years."

$20 Billion Club: Liabilities and Assets Peaked in 2019 and Funded Status Continues to Stagnate (PDF)

"Under more normal circumstances, the historic performance of equities in 2019 would have given DB sponsors a much-needed funded status boost, which in turn would have helped accelerate progress down de-risking glidepaths. Instead, the largest 20 US-listed corporate DB sponsors experienced an equally historic rise in liabilities stemming from a crushing drop in discount rates. Global equities returned 27% in 2019 while discount rates fell around 100 bps, leading to a slight decrease of average funded ratio in this group from 85.3% to 84.9%. The funding deficit in dollar terms increased from $137 billion to $151 billion."

Largest Corporate DB Plan Sponsors Make Subtle Shifts in Strategy as Funded Status Stagnates (PDF)

"In 2015, plan sponsor contributions were down more than 50% since 2013, with many sponsors taking full advantage of funding relief measures despite average funded status below 80%. Portfolio assets allocated to fixed income (mostly LDI) now exceed 40%, on average -- an increase from 33% in 2010. Three of the 20 plan sponsors allocated more than 55% to LDI. Better than half of the members of this group have adopted an alternative approach to calculating pension cost, via either the 'marked-to-market' or 'full yield curve' approach."

Cognitive Decline Adds to Case for DC Plan Auto-Features

"There is a wave of baby boomers now starting to retire, among whom are the first major cohort to face retirement relying primarily on DC assets. This group is on its own to turn an account balance into retirement income for life. So it is not good news that they're going to become less well-equipped to do this over time.... [P]art of the answer may lie in auto-features."

Asset Allocation Changes Among Biggest U.S. Pension Plans

"Many of the largest pension plans made significant changes to their asset allocation in 2014. Among the nineteen members of the $20 billion club -- a group of U.S. listed corporations that each have worldwide pension liabilities in excess of $20 billion -- no fewer than nine increased their allocation to fixed income by 4% or more during the year."