The Daily Brief for Benefits Professionals
BenefitsWire
Retirement Plans
July 28, 2026
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9 items · ~3 min read
Top of the Brief
DOL Files Fifth Amicus Brief Backing 401(k) Fiduciaries in Forfeiture Litigation“The Department of Labor filed its fifth amicus brief in a wave of ERISA forfeiture lawsuits, urging the U.S. 4th Circuit Court of Appeals to uphold the dismissal of claims against SAS Institute over its use of forfeited 401(k) contributions. The department argued that the plaintiffs’ theory of the case improperly expands fiduciary duties under the Employee Retirement Income Security Act to actions that are considered settlor functions.”
In this issue
Retirement Plans (2) · Litigation (1) · General Benefits (6)
Retirement Plans
2 items“In most instances, ERISA requires every person who handles ERISA plan funds or other property to be bonded against fraud and dishonesty losses. Maintaining bonding compliance is a fiduciary function under ERISA. The bond must cover at least 10 percent of the amount of plan assets that each of those people handled in the prior year. In general, this calculation is capped at a $500,000 limit for plans with assets of $5 million or more. There’s an exception to this rule for plans that hold employer securities, in which case, the maximum required limit would be $1 million.” MORE >>
Source: Segal
“Transamerica and Osaic’s Advo(k)ate Advisors on Monday announced the launch of the Advo(k)ate Nexus Pooled Employer Plan (PEP) designed to simplify employer plan administration while elevating the participant experience.” MORE >>
Source: American Retirement Association
Litigation
1 item“The Department of Labor filed its fifth amicus brief in a wave of ERISA forfeiture lawsuits, urging the U.S. 4th Circuit Court of Appeals to uphold the dismissal of claims against SAS Institute over its use of forfeited 401(k) contributions. The department argued that the plaintiffs’ theory of the case improperly expands fiduciary duties under the Employee Retirement Income Security Act to actions that are considered settlor functions.” MORE >>
Source: PLANSPONSOR
General Benefits
6 items“While these technologies promise efficiency and cost savings, recent litigation and regulatory activity underscore that the use of AI in benefits administration carries meaningful legal and fiduciary risk. Below we highlight key developments that plan sponsors can watch as they assess their use of AI in connection with employee benefit plans. AI tools are increasingly embedded in both internal and third-party platforms used by plan sponsors and participants. Health insurers, benefits providers, and plan sponsors are rolling out AI-driven tools on their websites (e.g., plan benefits sites) to help participants and beneficiaries locate providers, estimate costs, and better understand their cov” MORE >>
Source: Thompson Hine (ERISA Litigation & Compliance)
[Regulatory Action and Guidance]
AI Is Coming for Your Pension Plan’s Weakest Link“For many pension plans, AI is no longer experimental technology, it is becoming critical infrastructure. That matters because AI changes the cybersecurity landscape in two ways at once: it expands the attack surface while also making attackers more capable. For trustees and plan sponsors, this creates direct implications for fiduciary duty, regulatory compliance, and member trust. Treating AI as a side issue risks discovering, during a breach or operational failure, that a mission-critical process was never properly governed.” MORE >>
Source: NCPERS
“Target-Date Funds CIT’s Should Not Become Dumping Grounds for Private Equity, Private Credit, Crypto, Annuities, and Leverage ERISA fiduciaries control the retirement savings of workers who may depend on those assets for the rest of their lives.” MORE >>
Source: The Commonsense 401(k) Project
“Most American workers are struggling to balance everyday expenses with saving for the future, a new survey found, highlighting the need for more guidance on retirement planning. Just 26% of respondents to Vestwell's 2026 Saver Survey said they were very confident they were allocating extra money from each paycheck in the best way to meet their financial goals. That uncertainty extends even to high earners, with 64% of workers making $200,000 or more saying they were only somewhat confident.” MORE >>
Source: Employee Benefit News
“To help employees afford short-term expenses without sacrificing their long-term goals, the BlackRock/Commonwealth report recommended employers target key moments, such as open enrollment and pay raises, to encourage people to start saving, consider both in-plan and out-of-plan solutions, and make auto-enrollment into emergency savings accounts the standard. Since enactment of the SECURE 2.0 Act of 2022, employers are allowed to offer their workers two avenues for managing unplanned expenses within defined contribution plans: (1) a limited, penalty-free emergency expense withdrawal of up to $1,000; and (2) a pension-linked emergency savings account that allows those not classified as highly ” MORE >>
Source: PLANSPONSOR
“Secretary of the Treasury Scott Bessent said this year’s historic launch of Trump Accounts will “unleash a financial literacy boom” in prepared remarks delivered before the Financial Literacy and Education Commission on Monday. The meeting was convened to discuss digital financial literacy with a focus on helping Americans navigate the digital marketplace safely and critically, and make financial decisions more confidently as many consumers are turning to social media, online communities, and AI for financial advice.” MORE >>
Source: 401(k) Specialist