Legal

Small business owners now have a range of options depending on the number of employees, but it's essential to start early, leverage tax-advantaged retirement accounts, diversify investments and plan for an exit strategy.

Just weeks after a federal judge dismissed an ERISA lawsuit against the company over allegations of excessive fees, another employee suit has been filed, claiming the 401(k) plan offered funds that performed worse than alternatives.

Three major law firms have announced the formation of industry groups to help employers audit DEI efforts and navigate compliance issues.

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.

The ESG Working Group plans to focus on how ESG-centric investing prioritizes ideology over profits, they say, to the detriment of consumers, claiming "the Biden Administration is making it harder for Americans to retire."

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.

As the new law rolls out, some plan sponsors are questioning whether the government's capabilities to negotiate with Medicare on lower drug prices could prompt manufacturers to increase medication costs for employer plans.

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.