The Daily Brief for Benefits Professionals
BenefitsWire
Retirement Plans
August 19, 2026
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12 items · ~3 min read
Top of the Brief
Determination of Target Normal Cost and Funding Target for Single-Employer Defined Benefit Plans"This document contains proposed regulations that would modify rules in the existing regulations relating to the minimum funding requirement applicable to single-employer defined benefit pension plans. The modifications include changes to the rules relating to the determination of a plan’s target normal cost and funding target and would implement certain statutory amendments that have not yet been reflected in the regulations."
In this issue
Litigation (7) · Regulatory Action and Guidance (1) · Retirement Plans (2) · General Benefits (2)
Litigation
7 items“The judge rules that the amended complaint plausibly alleged target-date fund underperformance relative to Fidelity Freedom TDFs.” MORE >>
Source: PLANADVISER
“In Rushing v. Life Insurance Company of North America, No. CV 24-10088-JFW(RAOx), 2026 WL 2353337 (C.D. Cal. Aug. 13, 2026), District Judge John F. Walter granted an ERISA claimant’s motion for attorneys’ fees and costs in full, rejecting the insurer’s demand for an across-the-board 90 percent reduction and awarding $227,348.40. The decision offers a detailed application of the Hummell factors and the lodestar method in a long-term disability benefits dispute that turned on the correct calculation of Covered Earnings.” MORE >>
Source: Roberts Disability Law
“A meaningful benchmark — or lack thereof — has played a significant role in ERISA litigation of late. But a new appellate court decision offers a new perspective — in essence that you don’t need a meaningful benchmark for every ERISA prudence claim.” MORE >>
Source: American Retirement Association
“The new 401(k) lawsuit against Ford Motor Company contains a remarkably simple lesson: A low recordkeeping fee does not necessarily mean low recordkeeper compensation. According to the complaint in Fuller v. Ford Motor Co., Ford negotiated recordkeeping with Alight for approximately $20 per participant. That looks excellent. But plaintiffs allege Alight received millions of dollars of additional compensation through other relationships associated with the plans, including payments connected with Financial Engines’ managed-account services and rollover activity.” MORE >>
Source: The Commonsense 401(k) Project
“A suit alleging a fiduciary breach in the retention of an allegedly underperforming target-date fund series has been dismissed — for lack of a meaningful benchmark comparison.” MORE >>
Source: American Retirement Association
“A recent Fourth Circuit decision in a retirement plan dispute between tobacco giant Altria and an ex-worker underscored how service provider contracts can introduce snags in litigation, with benefits attorneys warning that employers may want to review documents with the potential for disclosure in mind.” MORE >>
Source: Hall Benefits Law
“As the first half of 2026 has passed, plan sponsors should be aware of ongoing significant litigation concerning the Employee Retirement Income Security Act (ERISA). Multiple cases may substantially impact ERISA issues, including pleading standards for fiduciary breach claims, 401(k) plan forfeitures, internal procedures for ESOP disputes, and wellness program structures to comply with nondiscrimination provisions.” MORE >>
Source: Hall Benefits Law
Regulatory Action and Guidance
1 item"This document contains proposed regulations that would modify rules in the existing regulations relating to the minimum funding requirement applicable to single-employer defined benefit pension plans. The modifications include changes to the rules relating to the determination of a plan’s target normal cost and funding target and would implement certain statutory amendments that have not yet been reflected in the regulations." MORE >>
Source: Federal Register
Retirement Plans
2 items“July was another positive month for corporate pension funding, but the story behind it differed from other months of positive performance this year.” MORE >>
Source: PLANSPONSOR
“On this day 20 years ago, Congress passed the Pension Protection Act of 2006, ushering in a new era for defined contribution plans.” MORE >>
Source: PLANADVISER
General Benefits
2 items“Many plan sponsors assume that a Department of Labor investigation begins with a deep dive into investments, participant complaints, or complex fiduciary issues. In reality, the first 15 minutes often tell an investigator a great deal about how a retirement plan is being managed.” MORE >>
Source: JD Supra
“For years, Emerging Markets (EM) local currency debt has been one of the most misunderstood segments of the fixed-income market. It can offer attractive yields, exposure to economies growing faster than many developed markets, and diversification benefits that can complement traditional fixed-income allocations. Despite these advantages, many investors have remained cautious, because they often don’t appreciate the full picture: EM local debt is often evaluated as a currency story when it should be evaluated as both a bond and currency story.” MORE >>
Source: NCPERS
Also of Note
- How Can a Plan Help Participants During Decumulation? — “During decumulation, behavioral biases may reduce the use of tools that can help participants with that process.” (American Retirement Association)