Article Summaries

Fiduciary and Plan Governance

Six Myths About Service Providers: How Believing These Can Increase ERISA Fiduciary Liability

Fiduciary breach litigation in the employee benefits sector has surged in recent years, drawing increased attention from class action attorneys and a growing pool of potential plaintiffs. As a result, the actions of plan fiduciaries are under intense scrutiny. Yet, many fiduciaries still operate under misconceptions about their legal responsibilities, misunderstandings that can significantly undermine their ability to safeguard themselves. This article reviews six prevalent myths that may heighten the risk of fiduciary liability.

Source: Cohenbuckmann.com

When the IRS Comes Knocking, and You Tossed the Evidence

IRS audits are challenging, but they become even more difficult when a plan sponsor has lost or discarded key records that the IRS requests. Without documentation, defending actions becomes nearly impossible, and missing records -- like a 2015 spreadsheet -- can be seen not as a minor oversight but as negligence. Here's the cold, simple truth.

Source: Therosenbaumlawfirm.com

Talking Points: A PEP-spective on Fiduciary Reviews

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.

Source: Napa-net.org

CAPTRUST'S November 2025 Fiduciary Update

Topics in this update include Forfeiture Cases Trending in Favor of Plan Fiduciaries, American Airlines Loyalty Breach Does Not Result in Financial Penalties, Fees and Investment Performance Cases Update, and Discretionary Investment Advisor Loses Summary Judgment; Plan Sponsor Fiduciaries Win.

Source: Captrust.com

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Insight: Studies, Research, Analysis, or Papers

Small Businesses Lag in Auto-Enrollment, Participation

Smaller retirement plan sponsors are less inclined to implement automatic enrollment, according to Vanguard's recent report, "How America Saves 2025: Small Business Edition." These smaller plans typically exhibit lower participation rates than their larger counterparts, largely due to limited auto-enrollment adoption and participants' generally lower income levels. The report draws on data collected at the end of 2024 from 21,261 small plans -- defined as those with up to $50 million in assets -- and 1,400 larger plans.

Source: Psca.org

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Items of Special Interest to Advisers or Other Service Providers

The Undiscovered Country: Why 401k Plan Providers Must Focus on Participant Outcomes

The author reflects on the metaphor of "the undiscovered country" from Star Trek VI and Hamlet, likening it to retirement. While not death, retirement represents a mysterious and often intimidating life transition. The passage emphasizes that despite decades of focus on fees, investments, and compliance, retirement planning remains an uncertain and underprepared journey for many participants.

Source: Jdsupra.com

Building a Strong Retirement Practice Starts With Listening

"Listen with intention and keep the end goal in sight." This was the central message of the October 28 session at the ASPPA Annual Conference. Amy Garman, QKA®, TPA Internal Retirement Plan Counselor at Capital Group, and Mickie Murphy, CPC™, QPA™, QKC, Director of ERISA Compliance at Prime Capital Financial, emphasized the power of purposeful listening and clear communication. These skills are essential for retirement plan professionals, not only to close sales but also to build lasting client relationships and, ultimately, to serve participants and their families effectively.

Source: Napa-net.org

Court and Legal

Guideline Accused of Corporate Espionage by Human Interest

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."

Source: Planadviser.com

The Evolution of DC Plan Class Action Litigation in 2025

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.

Source: Mayerbrown.com

401k Excessive Fee Suit Parties Strike $1.8 Million Deal

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.

Source: Napa-net.org

No Harm, No Foul? Not Exactly: Lessons From the American Airlines ESG Case

In Seidman v. American Airlines, the court acknowledged allegations of fiduciary breaches related to ESG (environmental, social, and governance) investments but ruled that without evidence of financial harm, no recovery could be granted. The decision doesn't endorse ESG investing; it simply underscores that fiduciary claims require proof of monetary loss. This serves as a cautionary note for plan sponsors and fiduciaries.

Source: Jdsupra.com

IBM Faces ERISA Case Over TDF Performance

Former IBM employees filed a lawsuit claiming the company violated its fiduciary duties under ERISA by failing to replace underperforming target-date and Vanguard mutual funds. The complaint alleges that IBM's continued use of its proprietary All-in-One Life Cycle funds and certain Vanguard options cost plan participants $1.9 billion in lost returns compared to better-performing alternatives like Fidelity and T. Rowe Price.

Source: Planadviser.com

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Legislative or Washington DC

Democratic Senators Highlight Risks of Alternative Assets in Retirement Plans

Senate Democrats contended that private equity funds often charge high fees and deliver returns below those of public markets. They also noted that extended lock-up periods can restrict savers from accessing their funds during emergencies. Furthermore, they urged the DOL and the SEC to enhance oversight, transparency, and due diligence standards before broadening access to private and digital assets.

Source: Findknowdo.com

New Push for Mandatory 401k Contributions Emerges

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.

Source: Napa-net.org

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Cyber and Plan Security

What Retirement Plan Sponsors Need to Know About Cybersecurity

Cybersecurity is a year-round concern for retirement plan sponsors, not just during Cybersecurity Awareness Month. Developing and maintaining an incident response plan is a key fiduciary duty. This includes preparing for breaches, learning from past incidents, and training internal teams. A strong cybersecurity plan not only protects sensitive data but also boosts employee confidence and demonstrates responsible plan management. This article looks at how such a cybersecurity response plan might be implemented.

Source: Planpilot.com

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Compliance and Regulatory

Practical Guide to 401k Plan Catch-Up Contribution Changes for 2026

Under the SECURE 2.0 Act of 2022, new rules affect catch-up contributions for retirement plans like 401k, 403b, and governmental 457b. Starting in 2025, employees aged 50 or older can make additional elective deferrals of $7,500, beyond the regular annual limit of $24,500. These rules do not apply to SIMPLE IRAs or SIMPLE 401ks, which follow separate regulations. The IRS issued proposed rules in January 2025, and the Treasury Department and IRS jointly released final regulations last month to clarify outstanding questions. This article reviews the key rule changes for catch-up contributions and provides practical tips for employers.

Source: Bakerdonelson.com

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Marketplace News

Wealthspire Combines Five Businesses Under Single Platform

NAPA Announces the 2025 Top Social Media Influencers

This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users. 401khelpcenter.com, LLC is not the author of the material unless specifically noted.