Alternative Retirement Plan Investments: The Checklist
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Insight: Studies, Research, Analysis, or Papers
Items of Special Interest to Advisers or Other Service Providers Court and Legal
Compliance and Regulatory
Marketplace News Article Summaries Fiduciary and Plan Governance Alternative Retirement Plan Investments: The Checklist Executive Order No. 14330 is widely viewed as opening the door for private equity and cryptocurrency investments in defined contribution plans, but does it really? Fiduciary responsibilities still apply when adding nontraditional investment options to a plan's lineup. While much has been written about private equity and cryptocurrency as investment choices, fiduciaries should consider a range of questions before making a selection. The checklist here is not exhaustive but should provide a good starting point. Source: Carltonfields.com AI Tech to Spot Fiduciary Risks in Coming Years Experts predict more businesses will adopt AI to reduce ERISA litigation risk. According to Transamerica's Prescience 2030 report, two-thirds of industry specialists believe AI can identify fiduciary risks earlier than traditional methods by detecting patterns such as unusual fund performance, hidden fees, administrative irregularities, and cybersecurity issues. Source: 401kspecialistmag.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, Analysis, or Papers What Does Retirement Readiness Mean for the Evolving Workforce? As the workforce continues to evolve, employers and retirement professionals face the challenge of anticipating and adapting to change. Industry experts at the recent SPARK conference in Palm Beach, Fla., emphasized that a strategy tailored to the diverse needs and interests of multiple generations in the workforce can be an effective approach. Source: Asppa-net.org Longevity Rises as Workers Retire Earlier A recent Manulife John Hancock report shows that many people retire earlier than expected, with 52% leaving work before their planned date, on average at age 56. Longer retirements are becoming common as life expectancy in the U.S. remains at 79 and the number of centenarians is projected to quadruple over the next 30 years. The report emphasizes the increasing need for employers, advisors, and financial institutions to provide support and personalized education to help workers better prepare for a potentially longer retirement. Source: 401kspecialistmag.com A Third of Fidelity 401ks Have Adopted Auto Portability Since October 2022, more than 9,200 Fidelity record-kept 401k plans, covering 3.7 million participants, have adopted auto portability, a service that automatically rolls over small retirement balances when employees change jobs. Fidelity's Q3 2025 analysis also highlights growing interest in Roth savings vehicles, especially among younger generations, due to their long-term tax advantages. Source: 401kspecialistmag.com Plan Sponsors Consider CITs for Private Market Exposure A new report from Cerulli Associates finds that plan sponsors of defined contribution plans are increasingly interested in using collective investment trusts to incorporate private market strategies. Rather than offering these alternatives directly on participant menus, sponsors prefer to include them in professionally managed accounts such as target-date funds or CITs. CITs are gaining popularity due to their flexibility, lower operating costs, and negotiable fees, with assets now representing 38% of total 401k channel assets, up 30% since 2019. Source: 401kspecialistmag.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Advisers or Other Service Providers Fidelity Unit Warns of "Massive Outages Across Major Fidelity Platforms," in New Lawsuit Fidelity Technology Group has filed a lawsuit against a Palo Alto software maker seeking an injunction to prevent Broadcom Inc. from terminating software access in two months. FTG argues that losing access would halt most RIA client servicing, disrupt Fidelity's operations, and potentially impact financial markets. The suit claims irreparable harm if the court does not intervene. Source: Riabiz.com Court and Legal Judge Dismisses Forfeiture Case Against Peco A federal judge dismissed another forfeiture reallocation lawsuit, emphasizing that plan documents govern fiduciary actions, Treasury regulations allow forfeiture reallocations, and participants received all promised benefits. The court also denied the plaintiff extra time to amend their arguments. Source: Psca.org Fidelity, Centene Face ERISA Suit for Excessive Fees, Misused Forfeitures A participant in the Centene Management Corp. Retirement Plan has filed a lawsuit against Centene Management and Fidelity, the plan's recordkeeper and trustee, alleging multiple breaches of fiduciary duty. The case, Clark v. Centene Corp. et al., filed in the U.S. District Court for the Northern District of California, claims violations of ERISA, including excessive administrative fees, improper use of forfeitures, and prohibited transactions. Source: Planadviser.com ERISA Forfeiture Case Against WPP Group USA Dismissed A federal judge dismissed a lawsuit accusing WPP Group USA Inc. and its retirement plan committee of misusing employee forfeitures to offset company costs instead of benefiting plan participants. The decision reflects a broader trend of mixed outcomes in forfeiture-related cases, with several recent dismissals, one case allowed to proceed, and another settled. Source: Planadviser.com Automotive Group Allegedly Lost 9% of 401k Assets During Recordkeeper Switch An employee of Rick Case Enterprises Inc. filed a lawsuit in the Southern District of Florida alleging the company mismanaged its 401k plan during a recordkeeper switch from Empower Retirement to Principal Financial Group, causing unexplained losses. The complaint claims the company breached fiduciary duties under ERISA. Source: Planadviser.com Law Firms Accused of Misusing Employee 401k Funds in Violation of ERISA Plan participants have filed an ERISA class action against Husch Blackwell LLP, alleging the firm misused employee 401k contributions by diverting them into its operating account instead of transferring them promptly to the retirement plan. The case is pending in the U.S. District Court for the Western District of Missouri. Source: Hallbenefitslaw.com Why 401k Consultants Should Be Included as Defendants in ERISA Litigation: Opinion The author says that the time for giving consultants a free pass is over. According to him, "consultants are conflicted, opaque, compensated in hidden ways, instrumental in the CIT expansion, and central players in nearly every excessive-fee, revenue-sharing, and TDF-corruption scheme. Suing only the plan sponsor or recordkeeper is no longer sufficient. Consultants must be part of the defendant group." Source: Commonsense401kproject.com »» Click here for more Court and Other Legal Issues Compliance and Regulatory Mandatory Roth Catch-Up Contributions for 2026 Many wonder why so much has been written about the new Roth catch-up rules. The reason is clear: these changes could significantly affect nearly every 401k plan. The rules are complex and far from intuitive, meaning plan sponsors who fail to prepare risk facing compliance issues that could have been easily avoided. Source: Legacyrsllc.com Cost-of-Living Adjustments for 2026 Fidelity has released a comprehensive three-page chart detailing the updated Retirement and Health Savings Account contribution limits for 2026. The chart provides a clear breakdown of key adjustments, including annual contribution limits for 401k, 403b, and 457b plans, catch-up contributions for individuals age 50 and older, and updated HSA limits for both individuals and families. Source: Fidelity.com Starting January 1, 2026, catch-up contributions for participants aged 50 and older who are classified as high-paid in 401k, 403b, and governmental 457b plans must be made on a Roth basis. Employers will need to identify these participants and ensure their catch-up contributions are Roth, even if their current election is pre-tax. The IRS has issued final regulations on this requirement, which will impact payroll systems, plan recordkeepers, and sponsors. Source: Foley.com »» Click here for more Compliance and Regulatory Material Marketplace News Paychex Launches AI Alerts to Give Advisors Real-Time Participant Insights Nestimate Introduces TDF Analyzer
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