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From Across the Web, the Latest Published Articles, Papers, and Research

Whole Foods Reaches Settlement in Excessive Fee Case

The parties in an excessive fee lawsuit involving the nearly $2 billion Whole Foods Market Growing Your Future 401k Plan have reached a settlement agreement. The participant-plaintiffs, represented by Capozzi Adler PC, had alleged that the plan's large size should have allowed for better fee arrangements and that failing to secure them constituted a breach of fiduciary duty. Following mediation on April 16, 2025, the parties agreed in principle to resolve the case.

Source: Psca.org, April 2025

401k Hardship Withdrawal Rules

If you're experiencing financial hardship, you may be able to access your 401k funds, but doing so can impact your long-term financial future. Starting in 2025, updated rules offer more flexibility, including penalty-free withdrawals for emergencies and protections for domestic abuse victims. Some plans allow quicker access through self-certification, though not all employers provide these options. It's important to understand when hardship withdrawals are allowed, how they operate, and the recent changes.

Source: Myubiquity.com, April 2025

The Supreme Court Delivers Troubling Decision for ERISA Excess Fee Cases

On April 17, 2025, the U.S. Supreme Court issued a unanimous ruling making it harder for defendants to dismiss excess fee cases involving 401k or 403b plans at early litigation stages, potentially leading to more costly and burdensome discovery processes. While the Court recognized this could raise litigation costs for employers, it suggested some alternative measures for lower courts to filter out meritless cases, though these measures are not widely used and their adoption remains uncertain. Consequently, the ruling may increase litigation expenses for plan sponsors and could also drive up fiduciary liability insurance premiums, even for plans not currently facing excess fee claims.

Source: Ktslaw.com, April 2025

The Choices You Make That Can Land You in Trouble as a 401k Plan Sponsor

The author draws a parallel between life being shaped by our choices -- like in "Choose Your Own Adventure" books or the latest Mission Impossible trailer -- and the decisions made by 401k plan sponsors. He warns that many sponsors may face problems later due to past choices in plan design and providers, potentially leading to negative consequences.

Source: Jdsupra.com, April 2025

High Court's Cornell Ruling Stands to Supercharge 401k Suits

William Delany, principal, and co-chair of the Groom's litigation group, was featured in this Bloomberg Law article discussing the Supreme Court's Cornell ruling. He highlighted that without proactive measures and legislative action, plan sponsors, service providers, and regulated entities could face overwhelming ERISA litigation, hindering innovation in the retirement plan industry.

Source: Groom.com, April 2025

401k AI Fee Benchmarking Saves Plan Sponsors

As a 401k plan sponsor, signing provider contracts without fully understanding fees can be risky, especially as litigation over excessive fees has surged 35% in 2024. Many sponsors, overwhelmed by marketing jargon, overlook the hidden costs that can harm plan participants and potentially violate ERISA regulations. 401k AI fee benchmarking offers a powerful solution, providing clear, precise fee comparisons that help sponsors fulfill their fiduciary duties and avoid legal trouble. Despite its benefits, many plan sponsors aren't demanding this tool from providers, risking high fees and regulatory penalties. Adopting AI-driven benchmarking can transform unclear fee structures into transparent, compliant plans that protect both sponsors and participants.

Source: Fiduciarynews.com, April 2025

The Cornell Supreme Court Decision Sanctions ERISA Fiduciary-Breach Lawsuits Without Proof of Wrongdoing

Jerome Schlichter, a leading figure in excessive fee ERISA class action lawsuits, has achieved three unanimous U.S. Supreme Court victories in cases against Intel, Northwestern University, and Cornell University, with no justice ever ruling against his novel fiduciary liability theories. However, according to the article's author, his latest case against Cornell has pushed excessive fee litigation to an extreme by securing a ruling that allows filing ERISA-prohibited transaction claims with minimal allegations -- simply that a plan contracted a service provider -- without needing any proof of wrongdoing or excessive fees. This contrasts with breach-of-fiduciary duty claims, which require a higher level of evidence.

Source: Encorefiduciary.com, April 2025

Confused About Retirement Plan Outsourcing?

Retirement plan sponsors often outsource services to focus on core business and gain expertise. However, outsourcing does not relieve ERISA fiduciaries -- such as plan sponsors and committee members -- of their legal responsibilities and liabilities for the plan. While outsourcing may reduce administrative burdens, fiduciaries still retain responsibility for decisions and must manage their personal risks accordingly.

Source: Colonialsurety.com, April 2025

More Articles, Papers, and Research »


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Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.

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