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The software provider was accused of mismanaging its profit-sharing 401(k) plan and failing to fulfill its fiduciary duties by diversifying the plan's assets, which resulted in significant losses, according to the Labor Department.

A second judge ruled the DOL's 5-part test to determine what defines "fiduciary" should be struck down, which was a victory for the Federation of Americans for Consumer Choice, an advocacy group for insurance distributors.

Most plan sponsors are monitoring regulatory changes, properly managing plan operations and have appropriate fund and investments offerings, but even with diligent effort, mistakes will happen.

Despite increased health care spending in the wake of the pandemic, average balances in health savings accounts increased since 2020, rising from $3,622 to $4,318 in 2021.

The Labor Department's Spring agenda includes a proposal that would amend the regulatory definition of a fiduciary, taking into account practices of investment advisers and the expectations of plan sponsors and participants.

While litigation is not widespread, it's important for plan sponsors to look at operations and shore up practices since there was action on 43 defined contribution cases during the first quarter of 2023, according to Mercer.

Issuing a new fiduciary rule is a "huge priority," as well as guidance on SECURE 2.0 and the ESG rule, said Lisa Gomez, assistant secretary of Labor for the Employee Benefits Security Administration, at a Spring Policy Forum.

From an attempt to override the veto to a legal challenge by Republican state attorneys general in 25 states, the political issues surrounding Labor's ESG rule will continue to swirl for the foreseeable future.