DOL Signals Shift to a More Fiduciary-Friendly Enforcement
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Headlines Fiduciary and Plan Governance
Insight: Studies, Research, Analysis, or Papers
Items of Special Interest to Advisers or Other Service Providers Court and Legal MEPs and PEPs Compliance and Regulatory
Marketplace News Summaries Fiduciary and Plan Governance DOL Signals Shift to a More Fiduciary-Friendly Enforcement of ERISA Under the second Trump Administration, plan sponsors and fiduciaries questioned how the DOL would pursue its policy goals amidst a deregulatory agenda and diminishing regulatory authority due to court decisions. Recently, the DOL has begun to demonstrate a more fiduciary-friendly approach to enforcing ERISA. Source: Jdsupra.com Things I Worry About: Every Plan Commits Prohibited Transactions and the Cornell University Decision In ERISA fiduciary breach lawsuits, plaintiffs typically need to demonstrate that fiduciaries violated legal standards. However, the Supreme Court's ruling in Cunningham v. Cornell University reversed this by placing the burden of proof for exemptions from prohibited transactions on the defendants -- plan fiduciaries. This shift is likely to result in more lawsuits alleging prohibited transactions moving forward to trial, increasing the risk of unfavorable outcomes for fiduciaries. Source: Fredreish.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, Analysis, or Papers "Gray Divorce" Trend Threatens Retirement Security: Study According to the 2025 Annual Retirement Study by the Allianz Center for the Future of Retirement, many married Americans believe that a divorce would significantly disrupt their retirement plans. While the overall divorce rate is declining, "gray divorce" among those aged 65 and older is on the rise. This trend poses specific challenges, particularly for couples who have developed a joint retirement strategy. The study reveals that 56% of married individuals feel a divorce would impact their financial retirement strategy, with 63% of millennials and 52% of Gen Xers expressing this concern, compared to 35% of baby boomers. Source: Allianzlife.com DCALTA Issues Principles to Guide DC Plan Stakeholders on Use of Private Market Investments The principles outlined in the paper are designed to assist fiduciaries, financial professionals, and stakeholders in improving DC retirement outcomes through a structured approach to private market investments. Michelle Rappa, Managing Director at Neuberger Berman and Chair of DCALTA, emphasizes that the paper can be a valuable resource for plan fiduciaries seeking to incorporate alternative assets into their investment strategies. Source: 401kspecialistmag.com Small Employers Not Taking Advantage of Plan Startup Tax Credits: And That's a Big Problem A recent working paper from the National Bureau of Economic Research reveals that a significant number of small employers are not utilizing tax credits designed to encourage them to establish retirement plans for their employees. Only 5.5% of eligible small businesses claim the Section 45E credit, which aims to incentivize retirement plan formation and has been improved through the SECURE Act and SECURE 2.0. Moreover, many small businesses that do not offer retirement plans are unaware of these available tax incentives. Source: 401kspecialistmag.com Participants Are Less Optimistic About Reaching Savings Goals: Schwab In 2025, retirement confidence has declined, driven by persistent inflation and an increased expected retirement age, according to a report from Charles Schwab. The "2025 Workplace Survey 401k Plan Participants" found that 57% of participants viewed inflation as a major barrier to achieving a comfortable retirement, with the average expected retirement age rising to 66 from 65 in 2024. Additionally, only 34% felt very likely to meet their savings goals, down from 43% in the previous year. Source: Planadviser.com Providers Lean on Tech to Lower Costs in Small 401k Plans In the retirement industry, "fees" are a significant concern for plan sponsors, retirees, and participants, often leading to negative implications and potential litigation. Small employers, hesitant about participating in a Pooled Employer Plan due to high costs, can explore automation as a solution for reducing fees. Experts believe that technology can help lower these costs for smaller employers, though fees continue to pose a challenge for those considering retirement plans. Source: Plansponsor.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Advisers or Other Service Providers Staffing Up: The When and How for Retirement Plan Advisory Firms As financial firms grow, strategically expanding their teams is crucial for long-term success. Brian Becker of Becker Suffern McLanahan Ltd. emphasizes that despite the challenges posed by regulation and competition, there are more resources available than ever. Effective growth requires careful planning, particularly in staffing and support. Leaders at advisory firms must identify indicators for additional support while balancing client demands and preserving the firm's culture. Source: Planadviser.com Court and Legal 401k Suit Asserts Fiduciary Breach With Managed Account, Forfeitures Siemens Energy, Inc. has been charged with a fiduciary breach involving its $3.5 billion Savings Plan. The class action suit, filed by participant Brian Babinski, alleges multiple violations: excessive recordkeeping fees, high costs for managed accounts, a poorly performing stable value option, and the use of forfeitures to offset employer contributions. The fiduciaries named in the suit include Siemens Energy, Inc., its Board of Directors, and various administrative and investment committees. Source: Asppa-net.org »» Click here for more Court and Other Legal Issues MEPs and PEPs DOL Issues Guidance to Encourage Small Employers to Participate in Pooled Employer Plans The DOL has acted in response to an Executive Order aimed at addressing the cost-of-living crisis by issuing guidance on Pooled Employer Plans on July 28, 2025. The document, titled "Pooled Employer Plans: Big Plans for Small Employers," emphasizes the DOL's strong support for PEPs as a means of helping small employers select affordable, high-quality retirement plans. The guidance also includes limited advice on reducing fiduciary liability for plan sponsors. The DOL and White House view PEPs as a significant opportunity for cost savings, particularly over the long term in retirement planning. Source: Wagnerlawgroup.com »» Click here for More MEP and PEP Material Compliance and Regulatory Oh, Fine! Keep the Money: The New IRS Overpayment Guidance Given the substantial amounts of money that circulate within a retirement plan and are allocated to various participants, it's not unusual for excessive funds to be deposited into an individual’s plan account. This article examines the existing correction methods for addressing overpayment failures and highlights the new guidance provided in Notice 2024-77 regarding such overpayments. Source: Ferenczylaw.com The Uncashed Check Conundrum: What Employers Need to Do Uncashed checks are a common issue faced by retirement plans, typically involving small accounts that are forced out of the plan or required minimum distributions. These checks may be returned if a terminated employee moves without notifying the plan or if a participant requests a distribution but fails to cash the check. Such uncashed checks can create compliance challenges for plan sponsors, often without their awareness. Source: Brickergraydon.com Cleaning Out the ERISA Attic: DOL Retires Obsolete Interpretive Bulletins The DOL has taken action on June 30 to remove several outdated and potentially confusing ERISA Interpretive Bulletins from the Code of Federal Regulations. This move aims to clear away old clutter that no longer serves a purpose, reflecting a more streamlined and understandable approach to ERISA regulations. Essentially, the DOL has tackled outdated materials to improve clarity and relevance in the regulatory landscape. Source: Jdsupra.com »» Click here for more Compliance and Regulatory Material Marketplace News Data Breach Exposes Most of Allianz Life's 1.4 Million Customers Strongpoint Partners Announces Partnership With United Benefit Pensions
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