Legal

The contruction firm is being sued over the fees retirement plan participants paid after being defaulted into managed accounts, which were "essentially expensive target-date funds," according to the ERISA lawsuit

Employers can "match" contributions for student loan payments to 401(k)s or offer auto-enrollment in an emergency savings account for participants, who could make contributions up to $2,500.

The American Council of Life Insurers and others are seeking to overturn the fiduciary rule finalized last month because it "undermines the expertise of state authorities who are responsible for overseeing annuities."

The Retirement Security Rule, finalized on April 23, is polarizing and is sure to face significant legal challenges (one lawsuit has already been filed), because the rule applies a new, heightened fiduciary duty to the insurance industry.

Younger workers are benefiting from auto enrollment by participating at higher rates than prior generations, while the Saver's Match program allows low-income workers to receive a match of up to $2,000 into their 401(k)s.

According to the DOL, the new fiduciary rule levels the playing field for insurance agents, brokers, financial planners and registered investment advisors to adhere to a best interest standard when providing investment advice.

To be well-positioned for the possibility of a Department of Labor audit, plan sponsors need to watch out for common errors, which include late deposits of employee contributions into the plan, failure to implement employee deferral elections and failure to provide required notices.

The Federation of Americans for Consumer Choice's lawsuit states that the Department of Labor's new "rushed" fiduciary rule is similar to a proposal struck down by the federal appeals court a decade ago.