The Daily Brief for Benefits Professionals
BenefitsWire
Retirement Plans
August 3, 2026
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9 items · ~2 min read
Top of the Brief
Ninth Circuit Vacates Class Certification in 401(k) Fee Case, Holding District Court Failed to Rigorously Analyze Typicality and Adequate Representation While Affirming Plaintiffs’ Standing“Although it affirmed standing, the court concluded that the district court erred by failing to conduct the rigorous analysis Rule 23 requires.”
In this issue
Regulatory Action and Guidance (3) · Retirement Plans (3) · Litigation (2) · General Benefits (1)
Regulatory Action and Guidance
3 items“This notice amends PTE 2014-06 to permit certain modifications (the Modifications) that were made with respect to the terms and provisions governing the Plan's holding and disposition of the Preferred Interests. Absent this amendment to PTE 2014-06 (Exemption Amendment), the Modifications would have resulted in violations of the prohibited transaction provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and/or the Internal Revenue Code of 1986 (the Code).” MORE >>
Source: Federal Register
“This IRS Notice (N-26-32) outlines an alternative method for carrying broker-dealers to comply with certain nonbank trustee rules. This guidance is relevant for retirement plans that utilize nonbank trustees and broker-dealers for holding plan assets, providing clarity on compliance procedures.” MORE >>
Source: irs.gov
The Department of Labor’s proposed rule on selecting designated investment alternatives for retirement plans includes a safe harbor for fiduciaries choosing retirement income solutions. But experts say that may not mean much for uptake. MORE >>
Source: American Retirement Association
Retirement Plans
3 items“The Department of Labor describes the proposal as creating a neutral framework for fiduciaries evaluating alternative investments. Yet one of its central features is reducing litigation exposure for plan fiduciaries who follow prescribed procedures when selecting investments. Private Equity industry supporters argue this encourages innovation; consumer advocates contend it shifts legal protection toward fiduciaries and asset managers rather than participants by blocking transparency.” MORE >>
Source: The Commonsense 401(k) Project
“Questions of portability and flexibility for both plan sponsors and participants can impede adding guaranteed retirement income offerings.” MORE >>
Source: PLANSPONSOR
“When people hear “AI,” they often think of large language models and virtual assistants. But for public Defined Contribution (DC) plans, AI may prove just as valuable in areas like prediction, pattern recognition, workflow automation, and decision support.” MORE >>
Source: NCPERS
Litigation
2 items“Although it affirmed standing, the court concluded that the district court erred by failing to conduct the rigorous analysis Rule 23 requires.” MORE >>
Source: Roberts Disability Law
Though the plan document appeared to require arbitration in pursuing recovery in a fiduciary breach suit, a federal appellate court has affirmed the decision of the district court in rebuffing that requirement. MORE >>
Source: American Retirement Association
General Benefits
1 item“Although the dispute unfolded against the backdrop of Code Section 409A’s plan termination rules, the bottom line for plan sponsors is this: top hat plans are unilateral contracts that employees accept through performance, and once accepted, the express terms of the plan document govern. While compliance with Section 409A’s termination and liquidation exception is required to avoid significant adverse tax consequences, a termination that satisfies the regulations can still be a breach of contract if the plan document does not clearly permit the lump sum and valuation of the payout.” MORE >>
Source: Groom Law Group
Also of Note
- Memorial Hermann Health System Reaches Settlement in ERISA Suit Over 401(k) Plan Fees, Fund Choices — “Memorial Hermann Health System, a Texas nonprofit hospital system, has settled a suit under the Employee Retirement Income Security Act (ERISA) relating to 401(k) plan fees and fund choices.” (Hall Benefits Law)
- New Bill Would Streamline Prohibited Transaction Rules for Retirement Plans — “Legislation has been introduced that would remove individual retirement accounts (IRAs) from the Department of Labor’s (DOL) regulatory authority, leaving the Department’s prohibited transaction rules in place only for employer-sponsored retirement plans.” (beta.dol.gov)
- Senate Panel Advances PLESA Enhancements, Employee Ownership Funding — “The Emergency Savings Enhancement Act advanced through the Senate Committee on Health, Education, Labor, and Pensions (HELP) on Thursday by a 19-3 vote.” (Gibson Dunn)
- A Shield, Not an Escape Hatch: Supreme Court Bars Immediate Appeal of Yearsley Denials — “In GEO Group, Inc. v. Menocal, 607 U.S. 438 (2026), the U.S. Supreme Court said no.” (Frost Brown Todd)
- Wyden Statement at Finance Committee Markup of Bipartisan Tax Administration Legislation — “Senator Ron Wyden highlighted the Taxpayer Assistance and Service Act's provisions to streamline the tax system, improve IRS customer service, and crack down on predatory tax preparers, while also noting the need for further reforms to ensure fairness.” (Senate Finance Committee)
- EEOC proposes to end workforce diversity reporting. Here's what to know — “In the News Jim Paretti offers advice to employers in light of an EEOC proposal that would allow organizations to stop collecting race and gender data for their workforce.” (Littler)
- DC Circ.'s Take On Deference May Imperil NLRB Doctrine — “In the News Alexander MacDonald interprets a D.C.” (Littler)
- BlackRock’s 2026 Public Pension Peer Study — “By: BlackRock Client Solutions Group As public pension plans navigate an increasingly complex investment landscape, many are expanding their focus beyond traditional asset allocation toward a deeper understanding of portfolio risk, resilience, and efficiency.” (NCPERS)
- Supreme Court Expansively Construes Removal Basis for State Suits Under Federal Officer Removal Statute — “This broader reading allows for federal removal of state-court suits where defendants’ targeted actions have a “close relationship” to the performance of federal duties, rather than requiring the stricter standard of an explicit governmental directive standard governing activities under federal contracts.” (Frost Brown Todd)
- Agency Information Collection Activities; Comment Request on U.S. Tax-Exempt Organization Returns and Related Forms. — “The IRS is soliciting public comments on an information collection request pertaining to U.” (Federal Register)
- Agency Information Collection Activities; Comment Request on Application for Certificate Discharging Property Subject to Estate Tax Lien — “The IRS is requesting public comments on an information collection request concerning applications for certificates discharging property from estate tax liens, in compliance with the Paperwork Reduction Act.” (Federal Register)
- Crapo, Wyden Applaud Committee Passage of Taxpayer Assistance and Service Act — “The Senate Finance Committee passed the Taxpayer Assistance and Service Act, a bipartisan bill aimed at improving taxpayer services and modernizing IRS operations by incorporating numerous reforms to enhance the taxpayer experience.” (Senate Finance Committee)