A federal district court dismissed a 401k-plan forfeiture complaint against Honeywell International for the second time, leading the plaintiffs to appeal the decision to the U.S. 3rd Circuit Court of Appeals. The amended complaint was dismissed with prejudice on August 18, meaning it could not be further amended. In the dismissal, the court noted that the plaintiffs had not established that Honeywell breached its fiduciary duties, as participants did not experience reduced contributions due to the use of plan forfeitures. The appeal was filed the following day, on August 19.
Three participants from separate defined contribution plans have filed a lawsuit in the U.S. District Court for the District of New Jersey against Empower Advisory Group LLC and its affiliates. The complaint alleges that Empower misled retirement plan participants into transferring their savings into high-fee investment products, violating fiduciary duties outlined in ERISA. The participants named in the complaint are Shakira Williams-Linzey from the Central Jersey Family Health Consortium 403b Pension Plan, Jennifer Patton from the Heliogen Inc. 401k Plan, and Kathleen McFarland from the Global Medical Response, Inc. 401k Plan. The lawsuit claims that Empower and its related companies engaged in prohibited transactions through their actions.
After five years of litigation, Kaila Gonzalez, a participant in the $5.6 billion Northwell Health 403b Plan, has reached a settlement in her excessive fee lawsuit against Northwell Health, Inc., the Northwell Health 403b Plan Committee, and 10 unidentified fiduciaries. Gonzalez filed the lawsuit in 2020, claiming that the defendants permitted excessive recordkeeping fees and imprudently retained certain investment options in violation of ERISA.
Participants in 401k and other DC retirement plans may soon have access to high-risk, potentially high-return investments following President Trump's Executive Order 14330, issued on August 7, 2025. This order aims to "democratize" investment opportunities and directs the Secretary of Labor to clarify guidelines on alternative assets and the fiduciary processes for offering such investments under ERISA. There is debate about the suitability of alternative assets for 401k and defined contribution plans. Nevertheless, investment fiduciaries must prioritize the prudent evaluation and documentation of these assets when considering them for participants in ERISA-governed retirement plans.
Getting ready for retirement can be overwhelming, especially with the sheer volume of information out there. It can be challenging to determine whose guidance to trust and which strategies will effectively support your financial objectives. This overload of information may even hinder your progress and reduce your retirement savings. Don't allow these six prevalent myths to divert you from achieving a successful retirement.
On July 28, 2025, the DOL released new guidance regarding pooled employer plans and the fiduciary responsibilities employers hold when participating in them. The guidance emphasizes that while PEPs can transfer some ERISA fiduciary liability risks to a pooled plan provider, employers must still prudently select and monitor these providers. The DOL's request for information seeks insights on market practices to consider establishing a safe harbor to encourage greater adoption of PEPs, which were introduced by the SECURE Act of 2019. This guidance aims to enhance employer understanding of evaluating PEPs and may lead to increased innovation in the investment options offered.
Diana Schneider from Massachusetts Mutual Life Insurance Company discusses how shifting demographics in the U.S. are impacting retirement planning and the role of plan sponsors. She notes that increasing longevity and generational behavior changes are reshaping attitudes towards aging and careers. Schneider identifies three key implications for employers regarding these evolving retirement dynamics. These insights suggest that plan sponsors need to adapt their strategies to better support participants in retirement planning as the nature of retirement continues to change.
Company culture and workplace benefits are evolving to meet the needs of younger generations in the workforce. To attract and retain young talent, companies must adapt their benefit programs, particularly in the area of company-sponsored retirement savings plans. Younger workers are increasingly reliant on their savings for financial security, rather than relying solely on Social Security. Additionally, they value features that address their specific needs, like student loan debt assistance, and investments that align with their social values. Recommendations are provided for benefits that would appeal to this demographic.
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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.
