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Plan Sponsor Takeaways from District Court's Dismissal of Tobacco Surcharge Claims

"The court reasoned that a participant who meets the wellness program criteria during the plan year under a reasonable alternative standard has the same reward as a participant who meets the criteria at the beginning of the year: the absence of a prospective surcharge. On that reading, the court held that failure to offer retroactive refunds does not itself render the program discriminatory.... The court declined to impose an exhaustion requirement, reasoning that the claims were statutory, not benefit denials." [Williams v. Bally's Management Group, LLC, No. 25-00147 (D.R.I. Nov. 4, 2025)]

What's At Stake In SCOTUS Pension Liability Case (PDF)

"If the Supreme Court sides with the Second Circuit, ... withdrawal liability estimates requested by and provided to employers prior to their withdrawal will be more reliable estimates of the actual withdrawal liability.... If, however, the court sides with the D.C. Circuit ... withdrawal liability estimates will be arguably unreliable for purposes of estimating the actual withdrawal liability, making it more difficult to plan for withdrawal liability in the same manner as an employer does any other corporate liability." [M&K Employee Solutions, LLC v. Trustees of the IAM National Pension Fund, No. 22-7157 (D.C. Cir Feb. 9, 2024; cert. pet. granted Jun. 30, 2025 No. 23-1209)]

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)]

PRT Litigation Scorecard: Defendants Are Up, But Standing Remains in Flux

"So far, five district courts have issued decisions on the motions to dismiss, plus a Report & Recommendation (R&R) from a magistrate court ... While three of those decisions, plus the R&R, granted defendants' motions to dismiss ... the grounds on which the motions were granted or denied could provide insight into the trajectory of these cases going forward, including a possible circuit split for the Supreme Court to address."

Required Roth Catch-Up Goes Live in 2026

"FICA wages: to aggregate or not to aggregate? ... Roth elections: to deem or not to deem? ... Applicability dates: can we say it more clearly? ... The final regulations include several changes that reflect issues raised by commenters and provide for additional flexibility in implementing and correcting the Roth catch-up requirement. "

Executive Order Seeks to Encourage PE and Crypto 401(k) Plan Investments

"[L]ifetime income investment strategies, such as longevity risk pooling, are also described as alternative assets, potentially opening the door to the development of a new class of investments designed specifically to address retiree income from 401(k) plans."

DOL Guidance Looks to Boost PEPs, Signals Potential PEP Fiduciary Safe Harbor

"Questions included in the RFI range from general questions regarding market practices related to PEPs to those aimed at understanding potential conflicts of interest arising with respect to PEP investment options and developing a potential regulatory safe harbor ... In addition to the interpretive guidance relating to fiduciary duties, the guidance also includes [specific] tips to encourage and assist small employers in picking a PEP."

A 'Big, Beautiful' New Benefit? What Employers Need to Know About Trump Accounts

"[M]ore guidance is necessary before employers can properly consider whether [this] is a worthwhile benefit to offer employees.... [1] Is the $2,500 employer contribution limit an annual limit or lifetime limit? [2] Is it possible for an employer to contribute more than $2,500 if the excess is included in the employee's gross income for the year? ... [3] May an employer make contributions only on behalf of employees who establish Trump Accounts with a trustee selected by the employer? ... [4] How would an employer run nondiscrimination testing? [5] What happens if a Trump Account Contribution Program fails nondiscrimination testing?"

Fiduciary Claims May Leave Health Plans on Life Support

"A rapidly growing line of ERISA cases seeks to impose fiduciary standards of conduct -- developed by courts largely in the retirement plan context -- to health plan design choices. The most recent ... involves a new and potentially disruptive twist: plaintiffs allege that the university violated ERISA fiduciary duties by offering an allegedly imprudent health plan option." [Barbich v. Northwestern Univ., No. 25-6849 (N.D. Ill. complaint filed Jun. 20, 2025)]

Supreme Court to Decide Whether Withdrawal Liability Assumptions May Be Set After an Employer's Withdrawal

"The Supreme Court's decision in this case will resolve a split between the D.C. and Second Circuits as to whether a plan actuary can calculate an employer's withdrawal liability using different assumptions than were in place as of the end of the prior plan year." [M & K Employee Solutions, LLC v. Trustees of the IAM National Pension Fund, No. 22-7157 (D.C. Cir Feb. 9, 2024; cert. pet. granted Jun. 30, 2025 No. 23-1209)]