The Daily Brief for Benefits Professionals
BenefitsWire
Retirement Plans
June 25, 2026
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12 items · ~4 min read
Top of the Brief
United States Circuit Court Issues Positive Ruling for Fiduciaries and Adherence to Good Process“The Third Circuit Court of Appeals ruled in favor of the defendants—and blessed their process as prudent—in In re Quest Diagnostics ERISA Litigation.[1] The lawsuit claimed that the defendants, Quest Diagnostics Inc.”
In this issue
Expert Analysis (6) · Regulatory Action and Guidance (1) · ERISA Litigation (1) · Retirement Plan Administration (4)
Expert Analysis
6 items“The program involves a 50% federal matching contribution of up to $1,000 for qualified retirement savers or up to $2,000 for those filing taxes jointly, which will be deposited directly into the taxpayer's IRA or 401(k) plan savings account. When the Saver's Match goes into effect in 2027, the volume of direct deposits from the U.S. Treasury into 401(k) plans and IRAs will require technology infrastructure that can handle all of those transactions on a timely basis every year. ... Taxpayers under age 59-and-a-half who make early non-hardship withdrawals from their Saver's Match contributions can be subject to a "recovery tax" mechanism that claws back any money that isn't repaid.” MORE >>
Source: Employee Benefit News
“Decades of research in behavioral finance and organizational behavior demonstrate that governance failures are not primarily caused by ignorance of the rules. They are caused by dynamics that distort decision-making even when the relevant knowledge is present.” MORE >>
Source: 401(k) Specialist
“While 71% of employees surveyed reported thinking at least somewhat about how they will withdraw money from their 401(k) account in retirement, only 22% said they have thought "a lot" about it, the firms' 2025 Participant Sentiment Survey found. Meanwhile, knowledge about the mechanics of making retirement savings withdrawals lagged: Employees correctly answered only about one-quarter of survey questions on the topic, with nearly half failing to correctly answer a single question about retirement plan withdrawals. ... Among employees who used both interactive and non-interactive planning tools provided through their retirement plan, 53% said they were very confident they would choose the bes” MORE >>
Source: PLANSPONSOR
“His central argument is simple: ERISA fiduciaries have an affirmative duty to conduct an independent investigation and disclose all material facts necessary for participants to make an informed decision under ERISA §§404(a) and 404(c), consistent with Section 783 of the Restatement (Third) of Trusts. A fiduciary cannot satisfy that duty by relying on opaque products or conflicted vendors. ... the disclosure problem is far worse for fixed annuities and Pension Risk Transfer (PRT) annuities than it is for lifetime income products. Those products are not merely difficult to understand. They often make meaningful disclosure practically impossible.” MORE >>
Source: The Commonsense 401(k) Project
“The 2026 Social Security Trustees report projects that the retirement trust fund will face depletion in late 2032, marking a critical six-year window for Congress to pass meaningful structural reform. If the trust funds deplete without congressional intervention, incoming tax revenues will only cover approximately 78% of scheduled payouts. This shortfall would equate to an immediate 20% to 22% reduction in monthly benefit checks.” MORE >>
Source: 401(k) Specialist
“Among the retirement-related priorities, the groups highlighted the Retirement Fairness for Charities and Educational Institutions Act of 2025, which would amend federal securities laws to finally allow collective investment trusts to be broadly used as investment structures in 403(b) retirement plans. Although Congress addressed part of the issue in the SECURE 2.0 Act of 2022 by amending the tax code, securities laws remained an obstacle, preventing many 403(b) plans from accessing the lower-cost investment vehicles already widely used in 401(k) plans. ... A Vanguard study cited by retirement industry advocates found average CIT fees of roughly 7 basis points, compared with 16 basis points ” MORE >>
Source: PLANADVISER
Regulatory Action and Guidance
1 itemPBGC is seeking OMB approval under the Paperwork Reduction Act for a new information collection to enroll individuals in the Direct Express debit card program, and is soliciting public comments on the request. Benefits professionals administering PBGC-related payments should be aware of this new enrollment data-collection requirement. MORE >>
Source: Pension Benefit Guaranty Corporation (PBGC)
ERISA Litigation
1 item“The Third Circuit Court of Appeals ruled in favor of the defendants—and blessed their process as prudent—in In re Quest Diagnostics ERISA Litigation.[1] The lawsuit claimed that the defendants, Quest Diagnostics Inc.” MORE >>
Source: Groom Law Group
Retirement Plan Administration
4 items“The IRS extended the amendment adoption deadline to December 31, 2026 for most qualified retirement, 403(b), and 457(b) plans. For governmental plans, the adoption deadline is December 31, 2029, and for collectively bargained plans, the adoption deadline is December 31, 2028. ... The SECURE 2.0 amendment includes required provisions that sponsors have already been administering operationally, including: Roth catch-up contributions for certain higher-paid participants Long-term part-time employee eligibility changes Required minimum distribution (RMD) age updates Enhanced catch-up contribution limits for participants ages 60 through 63” MORE >>
Source: Boutwell Fay
[Regulatory Action and Guidance]
Long-Term Care Distributions From Defined Contribution Plans – This is New!“Section 334 of SECURE 2.0 allows defined contribution plans to make "qualified long-term care distributions" without the additional 10% tax on early distributions under Section 72(t) of the Internal Revenue Code. ... This provision is effective for distributions made after December 29, 2025. Recently-issued IRS Notice 2026-33 provides necessary guidance on long-term care distributions. ... Plans aren't required to offer this feature. But unlike other Section 72(t) exceptions, if the provision is not offered, the relief is not otherwise available through the participant's tax return. ... Any plans subject to the SECURE 2.0 Act deadline of December 31, 2026 (generally all plans other than coll” MORE >>
Source: Groom Law Group
[Expert Analysis]
The Best Investment a 401(k) Provider Can Make Isn’t Technolog y—It’s Training“Everyone in the retirement plan business loves talking about technology. Recordkeepers spend millions promoting participant websites, mobile apps, artificial intelligence tools, and payroll integrations.” MORE >>
Source: JD Supra
[Expert Analysis]
What is a Bonus for Purposes of ERISA?“An ongoing dispute about a Department of Labor advisory opinion published last September raises a basic but unanswered question under the ERISA: What is a bonus?” MORE >>
Source: JD Supra