Compliance Stuff

When most people think about ERISA lawsuits, the usual suspects are plan sponsors. They’re the fiduciaries who pick the investments, hire the service providers, and have the crosshairs on their backs when plaintiffs’ firms go looking for blood. But every once in a while, the tables turn, and it’s the providers themselves who end up in the defendant’s chair. That’s exactly what happened in New Jersey, where three participants in separate plans are accusing Empower Advisory Group LLC and its affiliates of orchestrating a scheme to mislead participants into rolling over into high-fee products. The Complaint The plaintiffs are from three very different plans: · Shakira Williams-Linzey, from the Central Jersey Family Health Consortium 403(b). · Jennifer Patton, from the Heliogen, Inc. 401(k). · Kathleen McFarland, from the Global Medical Response, Inc. 401(k). Together, they allege that Empower and its web of affiliates—Empower Retirement LLC, Empower Financial Services Inc., and Empower An...

The One Big Beautiful Bill Act (OBBBA), which was signed into law on July 4, 2025, establishes the pilot program for the “Trump account,” an investment account for U.S. citizens under age 18 with a social security number. Parents, as well as other tax-paying entities, may contribute to a Trump account on behalf of their child every year until the child turns 18 . The Trump account will operate much like an IRA once the child turns 18. Contributions to a Trump account (which are non-deductible, so made from after-tax funds) are capped at $5,000 a year, and this figure will be indexed to inflation starting in 2027. Children who were born between January 1, 2025, and December 31, 2028, will receive an initial $1,000 federal deposit. Individuals who do not qualify for the initial $1,000 deposit may still open a Trump account if they are eligible. Eligible individuals may open a Trump account beginning January 1, 2026. The OBBBA requires Trump accounts to be invested in “eligible investme...