A "Cheat Sheet" for Deciding Whether to Add Private Equity or Other Alternative Investments to Plans
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Insight: Studies, Research, Analysis, or Papers
Items of Special Interest to Advisers or Other Service Providers
Court and Legal
Cyber and Plan Security Compliance and Regulatory
Marketplace News Summaries Fiduciary and Plan Governance A "Cheat Sheet" for Deciding Whether to Add Private Equity or Other Alternative Investments to Plans In this post of the Plan Sponsor and Fiduciary 2.0 series, a cheat sheet is provided for fiduciaries considering the inclusion of private equity and alternative assets in 401k plans. The focus is primarily on private equity, which is currently the most relevant area, though the guidance can also apply to other alternative assets. The post does not advocate for or against the addition of such assets or dictate specific decisions for plan sponsors and fiduciaries. Source: Bostonerisalaw.com The Hidden and Not-so-hidden Costs of Retirement Plan Complacency Many organizations are concerned about the costs of retirement plans and often lack insight into what they are paying due to complex regulations and plan structures. This uncertainty can result in receiving suboptimal value from service providers and inadequate oversight from advisors. To address these issues, this guide aims to educate organizations on understanding retirement plan fees, the legal requirements for disclosures, and the process of benchmarking to ensure they receive fair value. It will also identify common mistakes and warning signs to watch for that indicate a current advisor may not be adequately serving their needs. Source: Retirementplanology.com Evaluating Auto Rollover IRA Providers A recent article promoting auto-portability compared "traditional" automatic rollover IRAs to a landfill where those small balances languish and go unclaimed by accountholders. The "traditional" label was used to distinguish those automatic rollover IRAs from the auto-portability process. However, the auto-portability process also uses automatic rollover IRAs. To avoid being a landfill where small balances languish, automatic rollover IRAs should be assessed based on three criteria: minimal fees, a reasonable rate of return, and accessible information for better financial decision-making. Source: Penchecks.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, Analysis, or Papers This policy paper examines the characteristics of nontraditional workers, particularly gig workers, who do not fit the conventional definitions of employees or independent contractors. As a growing segment of the workforce, these individuals often face significant financial challenges regarding retirement, primarily due to low earnings and insufficient savings. The paper identifies barriers that hinder gig workers from achieving financial security in retirement and discusses potential strategies to overcome these challenges. Additionally, it explores ways to improve gig workers' access to savings options and incentives to better prepare for their future financial needs. Source: Actuary.org Fidelity Investments' Q2 2025 retirement analysis reveals record-high average balances for 401k, 403b, and IRA accounts. Factors contributing to this growth include consistent saving habits and strong stock market performance, despite earlier market volatility. Compared to Q2 2024, the average 401k balance rose by 8%, the 403b balance by 9%, and the IRA balance by 5%. Source: Fidelity.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Advisers or Other Service Providers 2025 Defined Contribution Consultant Study T. Rowe Price's fifth annual Defined Contribution Consultant Study captures current perspectives from the DC consultant and advisor community on a variety of retirement topics. Continuing trends from previous years, the study addresses issues such as target date solutions, retirement income, managed accounts, fixed income investments, and financial wellness programs. New for 2025, the study examines consultants' adoption of artificial intelligence, expectations for implementing private assets, and financial wellness solutions focusing on student debt and emergency savings. The survey involved 36 prominent consultant and advisor firms, predominantly consultants (81%), managing nearly $9 trillion in assets under advisement, which accounts for over 70% of the $12.5 trillion DC plan market. The study was conducted from January 13 to March 10, 2025. Source: Troweprice.com Retirement Trends Advisors Can't Ignore: Research Workplace savers are increasingly confident about their retirement prospects, but plan sponsors do not share the same optimism, highlighting a growing disconnect. This divide is influenced by economic uncertainty, longer lifespans, and insufficient portfolio growth, leading savers to save less while retirement costs continue to rise. Many savers express concerns about their future financial security, and retirees echo these worries. Advisors are positioned to help bridge this gap by addressing the differing perspectives. Source: Blackrock.com The 2025 Advisors' Choice Top Recordkeepers Which recordkeepers truly excel in the industry? Who offers the most exceptional services, support, products, and processes? Advisors, with their broad experience across different market segments and plans of varying sizes, are uniquely qualified to assess the wide array of available options. NAPA reached out to advisors to evaluate various service categories across five distinct market segments. They were asked to provide their insights solely on the services relevant to their target markets and to rate them on a five-point scale, ranging from "world-class" to "functional" and "needs work." Based on their evaluations, NAPA identified the top five recordkeepers in each of the five market segments categorized by size. Source: Napa-net.org Private Equity in 401k Plans: What Advisors Need to Know Advisors play a crucial role in helping plan fiduciaries assess whether private equity investments align with the plan sponsor's goals, risk tolerance, and the profile of participants. Before recommending private equity options to a plan's menu, advisors should consider several key factors: fiduciary prudence, operational complexity, and fees. Source: Spconsultants.com Court and Legal Supreme Court Scrutiny Reshapes 401k Fee Litigation The author suggests that a potential Supreme Court decision could either limit frivolous 401k lawsuits or increase their frequency. To defend against these challenges, fiduciaries should focus on three main strategies: maintaining thorough documentation linking costs to services, streamlining investment menu options to reduce easy targets, and employing a broader set of comparators that accurately reflect their plans. Proactive engagement in these areas will better prepare fiduciaries for the evolving legal landscape and help sustain participant trust. Delaying action is a significant risk; thus, it's vital to enhance documentation, simplify offerings where possible, and expand benchmarking immediately. Source: Fiduciarynews.com Relaxed Litigation Standards Continue to Shake Up ERISA's Careful Balancing Act The recent court case Guenther v. BP is notable due to its ruling that a plan disclosure from 1989 was unclear, leading to a requirement for the entire plan to be reformed based on a participant-friendly interpretation. This decision imposes over $1 billion in costs on the plan sponsor, even though the 1989 disclosure had no actual impact on participants or their elections. The case highlights a troubling trend in litigation against retirement plan sponsors, where courts have increasingly relaxed legal standards, including the constitutional "standing" requirement and ERISA's statute of repose, resulting in significant liabilities for plans based on outdated disclosures. Source: Encorefiduciary.com Judge Rebuffs Plaintiffs in Forfeiture Reallocation Suit In a recent ruling, a judge favored plan fiduciaries in a forfeiture reallocation lawsuit, dismissing claims of fiduciary breach without allowing the plaintiffs the chance to amend their arguments. The case was brought by Guadalupe Cano, a participant in the Home Depot FutureBuilder Plan, who sued Home Depot and its Administrative Committee for alleged breaches of ERISA fiduciary duties, violations of the anti-inurement provision, and engaging in prohibited transactions and self-dealing. Source: Asppa-net.org »» Click here for more Court and Other Legal Issues Cyber and Plan Security Beware of DOL Cybersecurity Audits The DOL is intensifying its focus on cybersecurity in audits and investigations, extending beyond the 2021 Best Practice Tips for health and welfare and retirement plans. Compliance with HIPAA alone is insufficient, as the DOL also evaluates service providers' past security incidents and legal issues. Inquiries delve into specific employer procedures, including policies on portable devices, system maintenance for storing plan data, and password requirements. To prepare for potential DOL audits, plan sponsors should assess their cybersecurity practices comprehensively. The article reviews steps to evaluate their preparedness for a DOL audit. Source: Groom.com »» Click here for more on Cybersecurity Issues Compliance and Regulatory PR Treasury Issues Rules to Retirement Plan Sponsors That Adopted SECURE 2.0 Act Amendments Puerto Rico qualified retirement plans must meet the qualification requirements of the Puerto Rico Internal Revenue Code and may also need to comply with U.S. Code requirements for participants who are residents of the U.S. On August 26, 2025, the Secretary of the Puerto Rico Treasury Department issued Administrative Determination No. 25-03 to outline the qualification rules related to the amendments from the Setting Every Community Up for Retirement Enhancement Act of 2022 Act) for these retirement plans. Source: Mcvpr.com PR Amends Tax Rules That Impact Certain Distributions From Retirement Plans On July 17, 2025, Governor Jenniffer Gonzalez Colon signed Act 65-2025, amending Section 1021.02 of the Puerto Rico Internal Revenue Code. The amendment exempts lump sum distributions from Puerto Rico qualified retirement plans from the Alternative Basic Tax, provided they are subject to the preferential tax rate of 10% under Section 1081.01(b) of the PR Code. This is a short review. Source: Mcvpr.com Gaps in Coverage Testing Can Sink the Ship Coverage testing is an essential aspect of retirement plan qualification that is frequently neglected. This testing establishes minimum standards to ensure that retirement plans provide benefits to both Highly Compensated Employees and Non-Highly Compensated Employees. Plan sponsors are required to continually show that their plans encompass a diverse group of employees, rather than only catering to those at the top. Specific rules govern which employees must be included in the testing, and special considerations apply in complicated scenarios such as mergers, acquisitions, or related employers. Is your 401k plan facing a coverage gap that could jeopardize its success? Source: Newfront.com »» Click here for more Compliance and Regulatory Material Marketplace News Pontera and Manulife John Hancock Retirement Announce Collaboration Broadridge Acquires Retirement Plan Technology Provider iJoin 401GO Unveils Program Matching 401k Sponsors with Advisors
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