The Daily Brief for Benefits Professionals
BenefitsWire
Retirement Plans
June 18, 2026
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13 items · ~4 min read
In this issue
Expert Analysis (5) · Regulatory Action and Guidance (7) · ERISA Litigation (1)
Expert Analysis
5 items“The Pension Benefit Guaranty Corporation issued its first opinion letter in more than two decades, using the newly revived guidance process to clarify how certain pension risk transfer transactions should be treated under federal law, while reaffirming the agency's long-standing position that pension guarantees end once obligations are transferred to an insurance company. ... the letter refers to the client, for which the letter was requested, only as "the Company" and concludes that annuity buyouts involving employees who remain employed generally should not be counted when determining whether a defined benefit plan has experienced an "active participant reduction" reportable event under th” MORE >>
Source: PLANSPONSOR
“With this rule, the DOL proposes a regulatory safe harbor from which the acts of plan fiduciaries of defined contribution plans will be given the presumption of prudence. The comments period has now closed and nearly 45,000 comments were filed, with some comments providing substantive suggestions to improve the implementation of the rule and other comments objecting to the rule because of concern that it will encourage the inclusion of risky, complex, and higher cost investment options, and result in less protection for Americans' retirement savings.” MORE >>
Source: Boutwell Fay
“The problem was structural. Stable value depended on: That distinction matters enormously. The Investment Company Act of 1940 is fundamentally a transparency regime. Mutual funds generally operate under: Stable value strained those rules. And if a synthetic stable value had trouble surviving inside a registered mutual fund structure, then general account fixed annuities are dramatically worse.” MORE >>
Source: The Commonsense 401(k) Project
“Executive employment agreements can play an important role in an organization’s compensation, retention, and leadership strategy. When well drafted, they align executive incentives with business goals, promote stability, and allow executives to focus on driving organizational success.” MORE >>
Source: Foley & Lardner
“This site displays a prototype of a “Web 2.0” version of the daily Federal Register. It is not an official legal edition of the Federal Register, and does not replace the official print version or the official electronic version on GPO’s govinfo.” MORE >>
Source: Federal Register
Regulatory Action and Guidance
7 items“The Department of Labor issued new guidance Wednesday concluding that most employer contributions to the new Trump Accounts created under last year’s tax and spending law will not, by themselves, subject employers to the federal pension law that governs workplace retirement plans.” MORE >>
Source: PLANSPONSOR
“Starting on June 5, 2026, all for-profit and not-for-profit businesses operating in Erie County, which includes Buffalo, the state's second-largest city, are prohibited from collecting, storing, procuring, using, and selling or otherwise monetizing customer biometric identifier information. ... Notably, the law also does not apply to employers that may collect biometric identifier information of their employees.” MORE >>
Source: Ogletree Deakins
“The Department of Labor issued new guidance Wednesday concluding that most employer contributions to the new Trump Accounts created under last year’s tax and spending law will not, by themselves, subject employers to the federal pension law that governs workplace retirement plans.” MORE >>
Source: PLANADVISER
“Plans with automatic enrollment boasted a 94% participation rate, compared to 64% of voluntary enrollment plans. Matching contributions from companies have also risen in the past years to a record 4.7%, reported Vanguard. ... About one-third of plans now offer deferral rates at 6%, for another all-time high.” MORE >>
Source: 401(k) Specialist
“Forgot Your Password? If you do not yet have an ERIC Online profile or user name and password, please create one using Create Profile Form. If you need assistance with your user name/password or profile, please contact ERIC at (202) 789-1400.” MORE >>
Source: ERIC
“In response to requests from the regulated community, the Department of Labor this morning issued guidance clarifying that employer contributions made to a minor child’s Trump Account will not generally be subject to Title I of the Employee Retirement Income Security Act (ERISA).” MORE >>
Source: 401(k) Specialist
⏱ Comment closes Aug 17
"The Pension Benefit Guaranty Corporation (PBGC) is proposing technical corrections, clarifications, and improvements to the restrictions and conditions in its regulation on special financial assistance. These changes would clarify (a) the permissibility of investing special financial assistance in certain securities and (b) the condition requiring PBGC approval for settling withdrawal liability claims. The amendments also would repeal a provision that enabled plans that received special financial assistance to request the reallocation of employer contributions to pay for health benefit costs." MORE >>
Source: Federal Register
ERISA Litigation
1 item“66 Franklin Street, Suite 300 Oakland, CA 94607 In Munger v. Cloud, No. 23-3107, 2026 WL 1734889 (9th Cir.” MORE >>
Source: Roberts Disability Law
Also of Note
- Groom’s Excellence Recognized in the Legal 500 – US Nationwide 2026 Guide — “In the Legal 500 – US Nationwide 2026 Guide, Groom is again recognized for its national leadership in benefits, executive compensation, retirement, healthcare, and ERISA litigation.” (Groom Law Group)
- Plaintiffs Suing Nationwide Could Lose Class Certification — “The motion is one of the first tests of the 4th Circuit's ruling in Trauernicht v. Genworth Financial Inc.” (PLANADVISER)
- Nationwide Seeks Class Certification Removal as 401(k) Fee Trial Looms — “The motion is one of the first tests of the 4th Circuit's ruling in Trauernicht v. Genworth Financial Inc.” (PLANSPONSOR)
- PBGC Guarantees Full Pensions for First Brands’ Workers — “The Pension Benefit Guaranty Corporation has guaranteed full pension benefits for more than 1,600 First Brands Group LLC retirees covered under three terminated pension plans.” (PLANSPONSOR)
- 2027 Budget Cuts for DOL, EBSA Approved by House Committee — “The House Committee on Appropriations approved legislation funding the Departments of Labor, Education, and Health and Human Services for fiscal 2027, advancing the measure by a 34 to 28 vote.” (PLANADVISER)
- House Appropriations Committee Advances 2027 Funding Cuts to EBSA — “The House Appropriations Committee on June 9 moved forward with an annual spending bill that would cut funding from the Department of Labor (DOL) and the Employee Benefits Security Administration (EBSA).” (401(k) Specialist)
- New Phoenix/LPL Litigation Strengthens the Case Against Fixed Annuities in 401(k) Plans — “Unlike insurer general account annuities, diversified synthetic stable value structures generally separate the fixed income portfolio from the wrap provider's balance sheet.” (The Commonsense 401(k) Project)
- Monthly Roundup (May 2026) — “We’ve rounded up our latest resources into one place so that you don’t have to! In case you missed any of our updates from last month, read on.” (Groom Law Group)
- Crypto in 401(k)s: PwC Accidentally Says the Quiet Part Out Loud Again — “The crypto industry keeps insisting that regulation will somehow make crypto “safe” for retirement plans.” (The Commonsense 401(k) Project)
- Lawmakers Push New Social Security Bills to Avert Insolvency — “As the Social Security Trustees report projects a 22% cut to benefits starting in 2032, two new bills would aim to narrow the incoming insolvency.” (401(k) Specialist)
- Executive Compensation and Benefits in M&A Transactions: Foundational Frameworks — “2:00 PM ET Virtual Joshua S.” (Troutman Pepper Locke)
- Third Circuit Affirms Dismissal of Life Insurance Claim Against Employer-Plan Administrator, Holding Only the Entity Controlling Benefit Determinations Is a Proper Defendant Under ERISA — “66 Franklin Street, Suite 300 Oakland, CA 94607 In Justman v. Accenture LLP, — F.4th —-, No.” (Roberts Disability Law)