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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)]

Russell Investments Draws Self-Dealing Scrutiny

"Plaintiffs in a new ERISA lawsuit say Caesars Entertainment allowed Russell Investments to pack its plan with proprietary investment options, to the disadvantage of plan participant outcomes." [Thomson v. Russell Inv. Mgmt. LLC, No. 21-961 (D. Nev. complaint filed May 19, 2021)]

Russell Investments Comment Letter to DOL on Lifetime Income Illustration in Pension Benefit Statements (PDF)

"[E]ven though we believe there is value in showing income values based on the projected balance (especially for a younger investor whose total wealth today is primarily in the form of earnings potential rather than current financial wealth) some care is needed in how this is done. For this reason, we would suggest that the Department consider giving greater prominence to the assumptions."

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.

Caesars Fiduciaries Hit Jackpot Due to Prudent Processes

"The heart of the ruling was the court's finding of the adequacy of the Caesars Defendants' monitoring of Russell ... after Russell took over as an ERISA section 3(38) investment manager. The court emphasized ERISA's focus on process, not short‑term results, and that performance alone is insufficient to sustain a fiduciary breach claim." [Wanek v. Russell Investments Trust Co., No. 21-0961 (D. Nev. Sep. 25, 2025)]

'$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."

Governance Checklist for Today's Fiduciaries: Delegation to Investment Staff or OCIO Partner (PDF)

"The investment committee is rarely in the best position to evaluate specific investment opportunities -- that should fall to the investment staff or OCIO partner. The investment committee does, however, play a vital role in ensuring that the objectives, constraints and risk tolerance are well defined; the investment strategy was arrived at following a sound process; and the results are monitored relative to clearly defined measures of success."

Governance Checklist for Today's Investment Committees

"Tasks that were once the purview of an investment committee (e.g., manager selection and rebalancing) are increasingly delegated to investment staff or transferred to an outsourced chief investment officer (OCIO) partner.... The biggest change in the investment committee's responsibilities occurs with the activities that fall between defining the objectives and monitoring progress towards those objectives. Namely, the design and implementation of the investment strategy."

Harmonizing DB and DC Investment Approaches (PDF)

"While an organization's defined benefit (DB) and defined contribution (DC) retirement plans typically share the same investment committee members, these plans don't always share a consistent investment approach. DC plans frequently offer their record keeper's mutual funds, due to brand appeal or the perceived benefits of bundling investment management and administration. Yet the same plan sponsors that accept this basic DC approach often adopt a completely different institutional approach in their DB plans. Harmonizing DB and DC investment approaches may lead to improved outcomes across plans, while demonstrating fiduciaries' strong adherence to best practice governance disciplines."

Elements of a Clearly Defined Investment Policy Statement for DC Plans (PDF)

"Fiduciaries are not only re-examining their current investment decision-making practices, they are also seeking to ensure that those practices allow for enough flexibility in implementation to maximize the likelihood of investment success, while protecting the plan sponsor from potential litigation. Central to the idea of a well-managed program, a clearly articulated investment policy statement (IPS) serves as the foundation of sound governance and a robust oversight process."