Scottsdale CEO Indicted for Embezzling From Retirement and Health Plans
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Fiduciary and Plan Governance
Insight: Studies, Research, Analysis, or Papers
Items of Special Interest to Advisers or Other Service Providers
MEPs and PEPs State-Based Private-Sector Retirement Programs Compliance and Regulatory Summaries Court and Legal Scottsdale CEO Indicted for Embezzling From Retirement and Health Plans James Vincent Campbell, CEO and founder of a company that manages employee benefits for federal contractors, was indicted for allegedly embezzling over $2.4 million from an ERISA benefit plan to finance exotic hunting trips in Africa and Alaska. He faces one charge of theft from an ERISA plan and 11 counts of money laundering. Campbell pleaded "not guilty" to the charges. Source: 401kspecialistmag.com Court Rejects Testimony of Plaintiffs' Prudence Experts in 401k Litigation Bench Trial The court ruled in favor of LabCorp, concluding that the plaintiffs did not demonstrate that LabCorp breached its fiduciary duty of prudence in managing recordkeeping fees and monitoring investment shares of the Plan. The decision was significantly influenced by the court's Daubert analysis of the parties' expert testimonies, which were deemed to have limited probative value. The court criticized the plaintiffs' experts for basing their conclusions on personal experiences rather than industry standards and for lacking familiarity with key documents related to their claims. Source: Millerchevalier.com Plaintiffs Appeal 401k Forfeiture Case Against Honeywell 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. Source: Planadviser.com Empower Accused of Pushing Excessive Costs, Underperforming Investments 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. Source: Planadviser.com Settlement Struck in 403b Excessive Fee Suit 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. Source: Napa-net.org »» Click here for more Court and Other Legal Issues Fiduciary and Plan Governance On August 7, 2025, President Trump issued an Executive Order aimed at expanding access to alternative investments, like private equity, commodities, real estate, and some digital assets, for participants in 401k and other DC retirement plans. This initiative seeks to "democratize" investment opportunities that were previously available primarily to institutional and wealthy investors. However, while the order highlights new investment options, ERISA fiduciaries must proceed cautiously, as the Executive Order does not change their fiduciary responsibilities under ERISA. In light of recent Supreme Court rulings, fiduciaries are also advised to reconsider how much they can rely on agency guidance and regulations when selecting investment options for retirement plans. Source: Benefitslawadvisor.com Selecting Annuity Providers for Retirement Plans: Tips for Success When a plan administrator chooses an insurer to offer annuities for a retirement plan governed by ERISA, this decision is considered a fiduciary act that must be carried out with prudence. Errors during this process can lead to substantial liability for the plan administrator and threaten the security of retirees. This article outlines how to utilize existing guidance and provides practical advice on how to properly document and defend your selection process. Source: Bradley.com Best Practices for ERISA Plan Sponsors and Fiduciaries in a Changing World: Using Insurance Wisely The significance of insuring liability risks for plan sponsors and fiduciaries managing benefit plans, especially 401k plans, has grown substantially in the wake of increased class action lawsuits targeting ERISA plan fiduciaries. It is crucial for plan sponsors to treat fiduciary liability insurance as a critical component of their risk management strategy, given the high costs associated with litigation and settlements in ERISA-related cases. Additionally, plan sponsors must proactively understand their insurance coverage to effectively leverage it to their advantage. Source: Bostonerisalaw.com Coming Soon to Your 401k Plan: Tontines and Other Exotic Investments 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. Source: Verrill-law.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, Analysis, or Papers Implications of Demographic Shifts for Retirement Plan Sponsors 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. Source: Plansponsor.com Selecting Plan Features That Appeal to Younger Employees 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. Source: Planpilot.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Advisers or Other Service Providers Things I Worry About: Executive Orders, Private Funds, and Fiduciary Standards This article by Fred Reish discusses the President's August 7 Executive Order aimed at expanding 401k investment options to include alternative assets. It clarifies common misconceptions about the Order, which instructs the Secretary of Labor to review current guidelines and determine their suitability for facilitating such investments. Additionally, the Order mandates the issuance of guidance to clarify fiduciary responsibilities related to 401k investments in alternative assets and to consider establishing a fiduciary safe harbor. Source: Fredreish.com Fiduciary Rule Litigation Delayed Again The DOL has requested an additional 60 days to determine its next steps regarding a consolidated federal court case challenging the retirement security rule established under the Biden administration. This is the DOL's third request for an extended stay in the U.S. Court of Appeals for the Fifth Circuit. The motion, filed on August 14 by the Department of Justice, seeks to extend the timeline to October 14, 2025, and notes that the other parties involved in the litigation have consented to this request. Source: Psca.org MEPs and PEPs DOL Sheds Light on the Fiduciary Responsibilities That Arise With Pooled Employer Plans PEPs 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. Source: Ropesgray.com »» Click here for More MEP and PEP Material State-Based Private-Sector Retirement Programs One Million Workers Have Saved $2 Billion in State Automated Retirement Savings Programs Private sector workers in 12 states have collectively saved over $2 billion for retirement through state automated savings programs, often referred to as "auto-IRAs." These programs aim to assist workers without access to employer-sponsored retirement plans by automatically depositing a portion of their paychecks into individual retirement accounts managed by private firms under state supervision. Research indicates that automatic payroll deductions significantly boost retirement savings. However, over 56 million private sector workers in the U.S. still lack retirement benefits from their employers. Since Oregon launched the first state automated savings program in 2017, participation among savers and employers has increased significantly, along with the total assets saved. Source: Pew.org »» Click here for more on Legislative and Washington Actions Compliance and Regulatory The encouragement of non-traditional investments, such as Alternative Assets, in retirement plan accounts has fluctuated with different administrations. A recent Executive Order aims to broaden access to these investments by facilitating the rescission of a statement from the DOL issued in December 2021 under the Biden administration. This statement responded to earlier guidance on private equity investments from the Trump administration. The Supplemental Statement was rescinded on August 12, shortly after the EO was issued. Additionally, within 180 days of the Order, the Secretary is required to review DOL guidance on fiduciary duties under ERISA regarding the inclusion of Alternative Assets in asset allocation funds, with a deadline set for February 3, 2026. Source: Pbwt.com »» Click here for more Compliance and Regulatory Material
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