The Daily Brief for Benefits Professionals
BenefitsWire
Retirement Plans
September 4, 2026
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11 items · ~4 min read
Top of the Brief
CGI Hit With $168 Million 401(k) ERISA Lawsuit Over Underperforming Fund“Lawsuit alleges CGI breached its fiduciary duties by retaining a large-cap growth fund for nearly 12 years despite persistent underperformance and significant asset outflows A well-known litigant in the ERISA space has filed a new $168 million suit against a large global tech company for holding an underperforming fund in its 401(k) plan. In the claim, filed Wednesday by Sanford Heisler Sharp McKnight in the U.S. District Court for the Eastern District of Virginia, CGI Technologies and Solutions, Inc. is said to have used a low-performing large cap growth fund in its DC plan for nearly 12 years. “It is disappointing to see fiduciaries fail to act when faced with obvious, objective financial ”
In this issue
Regulatory Action and Guidance (1) · Retirement Plans (5) · Litigation (1) · General Benefits (4)
Regulatory Action and Guidance
1 item“The IRS recommends that in order to head off problems that would be occasioned through loss of records, employers, plan administrators, and retirement plan professionals retain copies of plan documents not only in hard copy but also in electronic form. They further suggest that they do so concerning: Reconstructing Tax Records If a disaster has destroyed records that an employer, plan sponsor, or retirement plan professional has on file and that are necessary for compliance and plan administration, the IRS in Tax Tip 2026-67 suggests that the party that needs them obtain a tax transcript of Forms 1040, W-2, 1098, 1099, and 5498. This can be done by: Deadlines Taxpayers — including employers ” MORE >>
Source: American Retirement Association
Retirement Plans
5 items“Defined contribution retirement plans are a complex entanglement of many moving parts and players that can change at any moment. In our first article, we discussed the general rules and principles surrounding qualified retirement plan operational failures.” MORE >>
Source: Roberts Disability Law
“Plan churn occurs when an employer swaps retirement plan recordkeepers or terminates its retirement plan altogether. While these events may seem administrative in nature, they can create significant complications for workers who have already changed jobs and left retirement accounts behind. The average 401(k) participant will hold approximately 9.9 jobs during his or her working career, resulting in an estimated 14.8 million defined contribution participants that change jobs each year. That’s around 17% of all active participants in the defined contribution plan system.” MORE >>
Source: 401(k) Specialist
“Last quarter, the average 401(k) account balance reached $155,800, a 10.5% increase from Q1’s $141,000 average, as well as the largest quarterly jump on record since it grew 10.8% in Q4 2020, Fidelity reported. The average 403(b) balance grew last quarter to $145,000, an increase of 11.5% from Q1. The average total retirement plan saving rate remained at record levels for the second consecutive quarter in Q2, holding at 14.44% for 401(k) participants and 12% for 403(b) participants.” MORE >>
Source: PLANADVISER
“The Retirement Fairness for Charities and Educational Institutions Act would give 403(b) participants access to investments in collective investment trusts.” MORE >>
Source: PLANSPONSOR
“The average self-directed brokerage account balance at Schwab finished the second quarter of 2026 at $396,767, up 8.7% from Q1 and up 9.5% year-over-year, as Q2 saw markets rebound sharply as easing geopolitical tensions and resilient economic growth helped restore investor confidence. The data is from today’s release of the Schwab SDBA Indicators Q2 2026 Report, an industry-leading benchmark on retirement plan participant investment activity within self-directed brokerage accounts from Charles Schwab. The figures are based on 346,836 Schwab Personal Choice Retirement Account (PCRA) participants with balances between $5,000 and $10 million.” MORE >>
Source: 401(k) Specialist
Litigation
1 item“Lawsuit alleges CGI breached its fiduciary duties by retaining a large-cap growth fund for nearly 12 years despite persistent underperformance and significant asset outflows A well-known litigant in the ERISA space has filed a new $168 million suit against a large global tech company for holding an underperforming fund in its 401(k) plan. In the claim, filed Wednesday by Sanford Heisler Sharp McKnight in the U.S. District Court for the Eastern District of Virginia, CGI Technologies and Solutions, Inc. is said to have used a low-performing large cap growth fund in its DC plan for nearly 12 years. “It is disappointing to see fiduciaries fail to act when faced with obvious, objective financial ” MORE >>
Source: 401(k) Specialist
General Benefits
4 items“Companies can utilize the accounts to help their workers overcome hesitations to invest, speakers said.” MORE >>
Source: PLANSPONSOR
“As inflation and healthcare costs squeeze household budgets, 80% of Americans now say the country faces a retirement crisis, according to new research from the National Institute on Retirement Security.” MORE >>
Source: Employee Benefit News
[Regulatory Action and Guidance]
Developing What Employers Need to Know About Proposed Trump Account Contribution Rules“On August 11, 2026, the U.S. Department of Treasury (Treasury) and the Internal Revenue Service (IRS) issued proposed rules offering long-awaited guidance on employer contributions to Trump accounts. The rules include guidance on employer contributions, applicable nondiscrimination rules and related clarification for dependent care assistance programs (DCAPs). This blog focuses on Trump account contribution program design, payroll deductions, written plan requirements, employer contribution limits and implementation considerations.” MORE >>
Source: blog.ifebp.org
[Regulatory Action and Guidance]
IRI Urges Senate to Advance 403(b) Legislation“The Insured Retirement Institute joined a growing number of industry groups asking the Senate to pass legislation allowing 403(b) plans to offer collective investment trusts and nonregistered insurance company separate accounts. In a letter sent Tuesday to Senate Majority Leader John Thune and Majority Whip John Barrasso, the IRI urged the Senate to advance the Retirement Fairness for Charities and Educational Institutions Act through any appropriate legislative vehicle before the adjournment of the 119th Congress in January.” MORE >>
Source: PLANADVISER