One Big Beautiful Bill: The Benefits Provisions
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Insight: Studies, Research, Analysis, or Papers Items of Special Interest to Advisers or Other Service Providers 403b Plans Court and Legal
Cyber and Plan Security Compliance and Regulatory
Marketplace News Summaries Legislative or Washington DC One Big Beautiful Bill: The Benefits Provisions The key benefits-related provisions of OBBB are summarized in this chart. Key benefits of the OBBB include several provisions related to employee benefits. Notably, both the initial House-passed version and the final version maintain the existing tax incentives for retirement savings and do not cap employer-sponsored health insurance exclusions. However, the final version introduces changes to Health Savings Accounts, fringe benefits, and executive compensation. It also establishes new tax-preferred "Trump Accounts" for children and allocates $100 million to the Office of Management and Budget for deregulatory efforts. Source: Groom.com »» Click here for more on Legislative and Washington Actions Fiduciary and Plan Governance Why 401k Plan Sponsors Can't Afford to Be Cheap, Controlling, and Clueless After nearly 30 years in the industry, the author has witnessed numerous challenges faced by plan sponsors, including legal issues, missed opportunities, and poor fund selections. A common problem is that many plan sponsors are inattentive, despite wanting the best for their employees. Their tendencies to cut costs, exert excessive control, and become complacent create significant risks, leading to fiduciary liability and potential failure. The author views this negligence as a slow-motion disaster waiting to unfold. Source: Jdsupra.com DOL Reopens Discussion of Private Pension Investments Expectations The management of retirement funds is influenced by changing political dynamics, particularly concerning ERISA, which mandates fiduciaries to prioritize participants' interests. Recent discussions have revolved around new investment approaches like environmental, social, and governance criteria and emerging products such as cryptocurrency. In May 2025, the DOL initiated actions that reversed the previous Biden administration's policies on ESG and cryptocurrency. These shifts are significant for fiduciaries of ERISA plans, including private sector and union pension plans, as they must navigate compliance in an evolving financial landscape. Source: Lw.com DOL Reverses Course on ESG and Cryptocurrency Investment Policies The DOL is shifting its approach to environmental, social, and governance investing and cryptocurrency with qualified retirement plans governed by ERISA. In a letter to the U.S. Court of Appeals for the Fifth Circuit regarding the Utah v. Walsh case, the DOL indicated it will issue a new rule that aligns with the Trump Administration's view, which deems the use of individual ESG factors as inconsistent with ERISA fiduciary duties. This move will replace a 2023 rule from the Biden Administration. Additionally, the DOL has rescinded Biden-era regulations that discouraged cryptocurrency investments in defined contribution plans, removing previous warnings and easing the way for plan sponsors to incorporate digital asset options. Source: Hklaw.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, Analysis, or Papers How Employers and Policymakers Can Help Improve Retirement Security Defined contribution plans support retirement savings, but they frequently struggle to provide a reliable income in retirement. Annuities can convert savings into lifelong income, but their adoption is low. Guaranteed income solutions are another option that can ensure retirees receive a consistent paycheck for life. A collaborative approach involving both private innovations and public policy is necessary to strengthen retirement outcomes, enabling more Americans to retire with dignity. Source: Blackrock.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Advisers or Other Service Providers The Problem of Organizational Drift for 401k Plan Providers: Commentary The author expresses a keen interest in business history, especially the reasons behind the failures of certain companies and organizations. He foresaw the downfall of Sears and Blockbuster Video long before it happened. Failures in organizations don't occur overnight; as Red noted in The Shawshank Redemption, it simply requires "pressure and time." At the forefront of these issues is organizational drift, also known as strategic drift. This phenomenon occurs when an organization gradually strays from its original trajectory, often without being aware of the shift. For 401k plan providers, there's an opportunity to learn from the missteps of these unsuccessful providers to avoid making the same mistakes. Source: Jdsupra.com 403b Plans Broader Investment Options on the Horizon for Section 403b Retirement Plans The House Financial Services Committee has approved legislation (H.R. 1013, the Retirement Fairness for Charities and Educational Institutions Act of 2025) that aims to expand investment options for participants in retirement plans maintained by universities and hospitals. Currently, 403b plan participants have fewer investment choices compared to those in Section 401k plans. The proposed act would allow certain 403b plans to include collective investment trusts as an investment option, helping to address this disparity and improve the investment opportunities for 403b participants. Source: Mayerbrown.com »» Click here for More 403b Material Court and Legal Supreme Court Seeks Input From Solicitor General in 401k Fees Case The U.S. Supreme Court is soliciting the U.S. Solicitor General's opinion on a case involving Parker-Hannifin Corp.'s 401k plan, which has been accused of retaining underperforming target-date funds that charged high fees. The lawsuit, filed in 2021 by five current and former participants on behalf of approximately 32,000 members, claims that Parker-Hannifin violated its fiduciary duties under ERISA by mismanaging the retirement plan. A federal judge initially dismissed the case in December 2023, but the 6th U.S. Circuit Court of Appeals later reversed this decision. Source: Planadviser.com Schlichter, Pentegra Settle MEP Fiduciary Breach Suit for $48.5 Million In early May, a settlement was announced regarding a lawsuit that began in September 2020. A jury had previously awarded the plaintiffs nearly $39 million, although they had sought damages between $33 million and $115 million. Additionally, the plaintiffs had a second claim alleging the defendants engaged in prohibited transactions related to the retention of PSI, with potential damages of up to $157 million, along with requests for equitable relief for the plan's future management. The terms of the settlement have now been disclosed, though they fall short of the original amounts sought. Source: Napa-net.org Proprietary Fund Case Against Natixis Dismissed A federal judge has dismissed a lawsuit that claimed the Natixis defendants allowed underperforming funds to remain in a retirement plan out of self-interest and failed to prudently monitor or remove them. The suit argued that the defendants used an imprudent fund selection process by only adding proprietary funds since 2014. While the judge acknowledged the complexity of the case, they ultimately ruled against the arguments regarding imprudence in fund selection and monitoring. Source: Psca.org Arbitration Provision at Issue in Ninth Circuit Appeal of ERISA 401k Suit The Capital Group Companies Inc. is appealing to the U.S. Ninth Circuit Court to enforce an arbitration provision in its 401k plan, arguing that a lower court was wrong to deny its motion to compel arbitration in a former employee's ERISA lawsuit. The district court rejected the arbitration provision because it allegedly waived statutory rights under ERISA to seek class or collective relief for all plan participants. Capital Group contends that the district court misapplied the effective vindication exemption of the Federal Arbitration Act. Source: Hallbenefitslaw.com »» Click here for more Court and Other Legal Issues Cyber and Plan Security Cybersecurity for Employee Benefit Plans: How to Align With DOL Best Practices Employee benefit plans are increasingly vulnerable to cyber threats due to the sensitive data they manage, including Social Security numbers, medical histories, and financial information. This data, often stored with various third-party vendors, is attractive to cybercriminals. In response, the DOL calls on plan fiduciaries to adopt proactive cybersecurity measures and to regularly assess the effectiveness of these programs through independent third parties. The article outlines the DOL’s best practices and provides practical steps organizations can take to align with these guidelines. Source: Withum.com »» Click here for more on Cybersecurity Issues Compliance and Regulatory EBSA Nixes Obsolete Interpretive Bulletins Relevant to Retirement Plan Admin On June 30, the Department of Labor's Employee Benefits Security Administration announced the removal of certain interpretive bulletins related to the administration of retirement plans, deeming them obsolete and potentially confusing. This action, formalized in a Direct Final Rule, targets specific bulletins under ERISA that the DOL no longer considers necessary due to subsequent guidance and the implications of the 1978 Reorganization Plan No. 4. The DOL's objective is to reduce confusion and complexity in the regulatory framework. Source: Asppa-net.org Getting Ahead of the New Roth Catch-up Requirement: Issues to Consider Now Plan sponsors and recordkeepers were relieved by the postponement of the Roth catch-up contribution requirement under SECURE 2.0 until 2026, as compliance would have added significant complexity to the administration of 401k and 403b plans. This complexity necessitates prior planning and decision-making. Consequently, plan sponsors are encouraged to start addressing key issues related to this upcoming requirement. This article reviews some of those key issues. Source: Cohenbuckmann.com The IRS has made its stance clear: if you have plan forfeitures from 2024 or earlier, you must use them by December 31, 2025, or you could face compliance issues. Acknowledging that many plan sponsors may be unaware of this requirement -- whether due to lack of knowledge or oversight -- the IRS is providing a one-time grace period. Source: Jdsupra.com »» Click here for more Compliance and Regulatory Material Marketplace News Aronowitz Clears Senate Committee Vote to Head EBSA Great Gray's New TDF Solution to be Powered by BlackRock's Proprietary Glidepath Vestwell Partners with Amazon's DSP Program to Deliver Retirement Services
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