The IRS has finalized regulations under SECURE 2.0, addressing key provisions such as the Roth catch-up contributions for high-income earners and expanded "Super Catch-Up" limits for participants aged 60 to 63. These updates offer valuable guidance for plan sponsors and administrators and prompt important considerations regarding plan structure and compliance. Seyfarth's Employee Benefits team will provide practical insights into the implications of these changes.
On September 16, 2025, the IRS issued final regulations implementing the Roth catch-up contribution rules under the SECURE 2.0 Act of 2022. These rules require employers to change how catch-up contributions are taxed for high-income earners and to meet new administrative requirements. Employers are expected to comply in good faith starting January 1, 2026. With the final regulations now in place, employers need to begin preparing for both operational and documentation compliance.
Human Interest Inc. has renewed its legal claims against two former employees and Guideline Inc., accusing them of corporate espionage. The allegations include the theft of sensitive data and strategic documents, which were allegedly shared with Guideline's executives. The case, filed in the U.S. District Court for the District of Utah, includes multiple amended complaints and references internal communications among the accused, who referred to their plan as the "Sterri Takeover."
Canada's pension system received a better score in an ongoing survey of programs around the world, but still has room for improvement. Canada was given a grade of B, the same as last year, by the Mercer CFA Global Institute Pension Index 2025, but its score rose to 70.4 out of 100 from 68.4.
The parties involved in an excessive fee lawsuit -- originally seeking to include forfeitures but ultimately unsuccessful -- have settled. In the 2022 case, plaintiffs Tera Bozzini and Adrian Gonzales alleged that Ferguson Enterprises LLC mismanaged its $2.6 billion 401k plan. They claimed the company failed to use its scale to negotiate better terms, offered overly expensive investment options, and permitted conflicted service providers, including Prudential and CapFinancial, to charge excessive fees and earn substantial profits.
A bill, the Saving for the Future Act (H.R. 5887), has been reintroduced in the U.S. House of Representatives. It would require employers to contribute at least 50 cents per hour worked into each employee's retirement savings. If a traditional retirement plan like a 40k isn't available, the contributions would go into a universal personal account. The program is modeled after the UK’s National Employment Savings Trust and aims to combine emergency savings with retirement planning.
The DOL released a three-part proposed rule focused on pooled employer plans, offering fiduciary guidance that extends beyond PEPs. The publication, titled "Pooled Employer Plans: Big Plans for Small Businesses," reflects an intent to support small businesses. However, the author suggests that the guidance is broadly applicable to various emerging retirement plan options, such as cryptocurrency, managed accounts, and retirement income solutions.
As we approach the final months of an eventful year, benefits litigation has proven to be a dynamic area, especially in the realm of ERISA class actions involving defined contribution plans such as 401k and 403b accounts. Throughout 2025, there has been a notable uptick in class action lawsuits targeting these plans, driven in large part by a surge in new forfeiture-related claims. This article explores key developments and emerging trends in ERISA litigation affecting defined contribution plans, beginning with the latest wave of forfeiture lawsuits.
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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.
