Retirement & Benefits

Once a leader in the shift from defined-benefit plans to defined-contribution plans, the tech giant is now switching employees to retirement benefit accounts.

After 6 years of litigation, GE will settle the lawsuit—the largest-ever ERISA case alleging retirement plan mismanagement—which claimed underperforming funds were the only actively managed options available to participants.

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

"Prolonged investigations" create "tremendous strain on retirement plan sponsors" and negatively impact retirement savers, wrote House Republicans in a letter sent to Acting Secretary of Labor Julie Su.

In a class action lawsuit, the former employee alleges that 37% of his retirement savings were invested in BlackRock's Target Date 2045 fund, which uses ESG considerations.

One notable change from last year is increased utilization because of delayed preventive or elective care during the pandemic, which declined from 12% to 4%.

After a lot of pushback from employers and retirement industry organizations on a key SECURE 2.0 catch-up contribution change for higher-income employees, the IRS announced an "administrative transition period."

The lawsuit was brought by a former employee, who oversaw Twitter's benefits program, on behalf of thousands of employees who were laid off after Elon Musk acquired the company late last year.