Legal

A federal judge in Minneapolis has approved the huge settlement against the health insurer for depleting the retirement savings of 350,000 employees due to "poorly performing" target date funds.

The SPARK Institute submitted several recommendations regarding Saver's Match and proper use of forfeited plan funds to be part of the upcoming 2025-2026 Priority Guidance Plan, in a letter sent to the Treasury and the IRS.

This week, Cigna was again sued for fiduciary violations for using forfeited funds to reduce employer contributions to the plan, following a similar suit last month. What's surprising is that another health insurer, UnitedHealth, is now facing two similar 401(k) lawsuits.

Last year, UnitedHealth finally agreed, after three years of litigation, to pay the huge settlement over "low-performing" target date funds, and now attorneys Sanford Heisler Sharp have asked a federal judge for $23 million in attorneys' fees.

The American Academy of Actuaries has developed a range of options that public policymakers, and plan sponsors, should consider to address obstacles that remain for spouses of participants in 401(k) plans, in the event of death or divorce, as well as for domestic partners.

The Valid Benefits Act, which was reintroduced by Representative Greg Steube, would require federal agencies to check every six months to see whether adults ages 105 or older are deceased.