The Daily Brief for Benefits Professionals
BenefitsWire
Retirement Plans
August 5, 2026
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9 items · ~3 min read
In this issue
Retirement Plans (4) · Litigation (3) · General Benefits (2)
Retirement Plans
4 items“Employers' comfort level is highest when it comes to back-office and communication tasks, with 79% willing to use AI for plan analytics, 73% for automating routine processes, and 72% for personalizing employee communications, the WTW 2026 Defined Contribution Survey revealed. The hesitation grows when AI moves from administrative support into areas that carry greater risk: Only 37% of employers are willing to use it for compliance and risk management, while fewer support its use for recordkeeper oversight (33%) and fiduciary governance (29%). Underlying that hesitation are concerns about data privacy and security, which were cited by 74% of employers.” MORE >>
Source: Employee Benefit News
“The SECURE 2.0 Act of 2022 was enacted Dec. 29, 2022, as Division T of the Consolidated Appropriations Act, 2023. Section 127 of that law created the PLESA. The governing rules sit in new sections 801 through 804 of ERISA, with parallel provisions in section 402A(e) of the Internal Revenue Code. The feature became effective for plan years beginning after Dec. 31, 2023.1 In January 2024, the DOL issued a set of 20 FAQs covering administration of PLESAs, and the IRS issued Notice 2024-22 addressing the anti-abuse rules tied to the employer match.2 Both sets of guidance can be relied on now.” MORE >>
Source: American Retirement Association
“Public pension leaders are optimistic about AI's long-term potential, but they continue to prioritize human judgment and risk management as adoption evolves, according to a new NCPERS survey.” MORE >>
Source: NCPERS
[General Benefits]
Kelsey’s (K)orner: The Saver’s Match Is Coming; Let’s Make It Work“Beginning in 2027, Uncle Sam is supposed to start matching retirement contributions for millions of lower- and moderate-income Americans. Save $2,000, and the government kicks in another $1,000.” MORE >>
Source: American Retirement Association
Litigation
3 items“A novel lawsuit argues employers must offer fossil-fuel-free equity options as a faith-based accommodation, testing the Supreme Court’s Groff decision.” MORE >>
Source: PLANSPONSOR
“In In re: Quest Diagnostics ERISA Litigation, the Third Circuit rejected this theory of fiduciary imprudence. The decision affirms several key ERISA principles that, if applied correctly by other courts, should lead to the defeat of similar lawsuits that challenge 401(k) investment options. Quest's 401(k) plan offered participants a menu of investment options that included Fidelity Freedom Funds, which is a popular suite of target-date funds, and the Invesco Global Real Estate Fund. Both funds are actively managed, meaning their holdings are actively monitored and changed by the investment companies. According to the plaintiffs, these funds performed worse than passively managed funds, were ” MORE >>
Source: Faegre Drinker
“The order reversed key legal conclusions on brokerage-window fee disclosures, but factual disputes over Fidelity compensation stand for trial.” MORE >>
Source: PLANSPONSOR
General Benefits
2 items“The Service ruled in favor of the taxpayer, confirming that such transfers, when properly structured, are non-taxable events and do not trigger immediate income recognition under Section 408(d)(1) of the Internal Revenue Code (IRC). ... To ground this distinction, the IRS relied heavily on the foundational principles of Revenue Ruling 78-406, 1978-2 C.B. 157. Revenue Ruling 78-406 holds that “the direct transfer of funds from one IRA trustee to another IRA trustee, even if at the behest of the IRA holder, does not constitute a payment or distribution to a participant, payee or distribute.” MORE >>
Source: currentfederaltaxdevelopments.com
[Retirement Plans]
Young Workers Seek Retirement Advice Earlier Despite Financial Headwinds“I think today’s younger generations are facing a level of financial complexity that previous generations simply didn’t encounter at the same stage of life,” said Chartos. “They’re trying to navigate high housing costs, student debt, inflation, shifting job markets and even concerns about how artificial intelligence could impact their careers and earning potential.” Among those surveyed who worked with an adviser, Gen Z respondents reported first doing so at the average age of 22, compared with 30 for Millennials, 40 for Gen X and 47 for Baby Boomers. The study was based on an online survey of 4,375 U.S. adults conducted by The Harris Poll from January 5 through 21.” MORE >>
Source: PLANADVISER
Also of Note
- Women on GLP-1s and hormone therapy seek better clinical support — “Women are using GLP-1 and hormone therapy prescriptions to better manage their health, but when it comes to corresponding clinical support, their needs are going unfilled.” (Employee Benefit News)