The DOL has filed a motion withdrawing its appeal of court challenges to the so-called fiduciary rule issued during the Biden administration. The motion to dismiss the appeal filed in the U.S. Court of Appeals for the Fifth Circuit indicated that the other parties do not oppose the motion.
One Brooklyn Health System Inc. is facing a complaint for investing assets from one of its 403b plans in retail share classes of J.P. Morgan target-date mutual funds rather than opting for lower-cost institutional share classes. The complaint states that the plan sponsor chose the retail class in 2014, which carried expense ratios between 0.86% and 1.03%. By 2015, other share classes became available with significantly lower expense ratios ranging from 0.05% to 0.67%.
According to an updated report from the Economic Innovation Group, Census Bureau data shows that in 2024, 42% of private-sector employees aged 18 to 65 working full-time lacked access to retirement plans. This represents about 40.6 million people, and the number rises to 53.7 million when part-time workers are included.
A California federal judge dismissed a lawsuit claiming AT&T violated ERISA by using 401k plan forfeitures to offset company contributions. The ruling aligns with similar decisions against other major companies, emphasizing that ERISA does not require fiduciaries to maximize account balances beyond promised benefits. The plaintiff also failed to show that plan assets were diverted or removed, a key element for an anti-inurement claim.
SEC Commissioner Mark Uyeda urged policymakers to allow 401k and other defined contribution plans to invest in private market assets. He argued that excluding these options limits retirement savers and noted that private equity, private credit, and similar investments can enhance diversification and improve risk-adjusted returns for long-term investors. "Regulation should provide guardrails, not gates," Uyeda said.
Plan sponsors should evaluate cost-of-living adjustments to identify any changes that need to be communicated to employees during orientation sessions or through enrollment materials. Additionally, updated amounts may need to be entered into payroll systems or other HR platforms to ensure accurate tracking of contributions to employee benefit plans. Here is a chart of changes.
Staying compliant can be challenging, especially when navigating complex rules and deadlines outlined in the SECURE 2.0 Act. This includes requirements specific to 403b plans. At the recent ASPPA Annual Conference, John Griffin, Principal at ASC Institute, LLC, and Susan Poliquin, Director of Document Services at Definiti, explored key factors for meeting these requirements and deadlines.
The changing regulatory landscape around guaranteed income solutions creates significant advantages for both plan participants and sponsors. Participants benefit from guaranteed income solutions that strengthen retirement security, while sponsors have equally compelling reasons to adopt these options. This article highlights five key ways in-plan annuities can support plan sponsors.
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Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
