Retirement Regulation

This week, New Jersey became the last state to get on board with the National Association of Insurance Commissioners new rule, after agents and brokers grew wary of the DOL’s efforts to bring annuity sales under a fiduciary umbrella with its latest fiduciary rule.

A New York jury awarded 26,000 employees $38,760,232 in an ERISA fiduciary breach lawsuit over unreasonable recordkeeping and administrative fees from their retirement plan provider.

Senator Bill Cassidy, ranking member of the Senate Health, Education, Labor and Pensions Committee, has issued a white paper outlining proposals to provide retirement plans to independent workers.

The Labor Department’s rule that allows environmental, social and governance factors to be considered when choosing investments for retirement plans has been challenged since it took effect in 2023, but now the DOL has asked the appeals court to suspend proceedings.

Former employees had sued the grocery chain for failing to rein in recordkeeping costs from Fidelity, even though services were “routine” and did not justify the excessive costs, according to the class action lawsuit.

Since the Court took a worker-friendly approach on behalf of the University’s 28,000 employees in this excessive fees suit, the final ruling could burden plan fiduciaries and open the floodgates of meritless litigation, say retirement industry groups ERIC and the Spark Institute.