Retirement Trends

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.

The justices are now seeking input from the Department of Labor in this Home Depot case, after unanimously agreeing that the burden of proof lay with plan fiduciaries in the Cornell University excessive fee case last week.

While the official IRS announcement will come later this year, the contribution limit for retirement accounts will likely increase from $23,500 to $24,500 in 2026, according to a new Milliman report.

The index was designed to spark a national conversation, shine a light on the areas where Americans are falling short, and provide a roadmap for workers and employers to take action, according to IRALOGIX.