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The Silent Killer of Retirement Plans: Compensation Definitions

"Compensation is the heartbeat of a retirement plan. It drives contributions, testing, employer matches, limits, and eligibility. You could have the best advisor in the world, a TPA who isn't asleep at the switch, and a plan document written in such perfect ERISA-speak that it should be framed in a museum. None of that matters if compensation is wrong. And it's wrong a lot."

When the Loan Defaults Come Home: A Fiduciary Wake-Up Call

"[L]oan defaults are the leak nobody talks about. You can have great fund lineups, low fees, and compliant disclosures -- but when participants leave their jobs and their loan becomes taxable income, that's a permanent loss of savings.... Will employers make [Custodia's RLP] an opt-in benefit or automatically apply it to new loans? How will costs be handled? Will participants understand it's insurance against default, not a free loan forgiveness program? Like every new benefit, the success will depend on communication and administration."

Fiduciary Gamechanger: What the Cornell 403(b) Decision Means for You

"More lawsuits will survive motions to dismiss. They'll get past the gate. That means discovery. That means costs. That means plan sponsors and fiduciaries need to be sharper than ever.... [1] Audit all your service-provider contracts.... [2] Ask your advisor: 'When was the last competitive bid?' ... [3] Review your committee and fiduciary process.... [4] Update your disclosures and communications.... [5] Don't ignore the cost. Litigation is expensive.... [6] Consider monitoring litigation risk as part of your fiduciary oversight."

When a Recordkeeper Switch Becomes a Fiduciary Freefall

"A recordkeeper switch is not simply a checkbox for 'vendor change'. It is one of the highest-risk operational events in a plan lifecycle. Blackout periods must be communicated clearly, participant funds must be accurately transferred, and plan fiduciaries must vigilantly follow every step of the process. If you hand off everything to your provider, and then treat the transition like a lunch meeting that maybe one of your folks attended, you are creating systemic risk."

DOL Backs Employer in Forfeiture Allocation Case -- but Don't Pop the Champagne Just Yet

"The DOL didn't sue. It wasn't a party. But in the first appellate-level case tackling forfeiture allocation under ERISA, the DOL felt compelled to jump in, not on the side of the plaintiffs, which is usually the case, but on the side of [the plan sponsor].... [T]his brief is a shot across the bow to plaintiffs everywhere, and it signals that the DOL and the IRS are now singing from the same hymnal." [Hutchins v. HP Inc., No. 23-5875 (N.D. Calif. Feb. 5, 2025; on appeal to 9th Cir. No. 25-826; DOL amicus brief filed Jul. 9, 2025)]

Stable Value Funds and the Perils of Fiduciary Oversight

"Stable value funds are supposed to be the 'safe harbor' in a defined contribution plan, the place where risk-averse participants can find steady returns. The plaintiffs here allege the GIBC fell short of that promise, claiming its returns lagged far behind what comparable products offered at the same level of risk.... Fiduciaries must treat every investment option, whether it's an S&P 500 index fund or a stable value contract, with the same disciplined monitoring process." [Carter v. Sentara Healthcare Fiduciary Comm., No. 25-0016 (E.D. Va. amended complaint filed Aug. 18, 2025)]

Intel Wins: Ninth Circuit Puts the Brakes on Anti-Private Equity Lawsuit

"This decision is important -- not just because it ends a legal marathon, but because it puts to rest the argument that certain investment types, like private equity or hedge funds, are automatically off-limits for participant-directed plans." [Anderson v. Intel Corp. Inv. Policy Comm., No. 22-16268 (9th Cir. May 22, 2025)]

Why TPAs Shouldn't Ignore SEP-IRAs -- But Also Shouldn't Stop There

"As a gateway, SEP-IRAs make sense. They're the training wheels of employer-sponsored retirement plans. But the problem is too many employers, and too many plan providers -- never take the training wheels off.... If your client has more than one employee, or plans to hire more, the SEP-IRA is a temporary fix at best, and a costly mistake at worst."