Benefits Blast

As the 2026 proxy season approaches, companies should be mindful of developments in required executive compensation disclosures and related issues that may arise as they prepare proxy statements. This alert surveys key developments and provides specific action items for companies to consider.

The IRS recently released Notice 2025-67 to announce cost-of-living adjustments to the indexed dollar limits applicable to retirement plans.

The Internal Revenue Service recently published limits for 2026 in Revenue Procedures 2025-19 and 2025-32. Below we have outlined health and welfare limits for 2026 and the changes in those limits from 2025.

401(k) plans may allow employees aged 50 or older to make elective deferrals over the annual limit; these deferrals are known as “catch-up” contributions.

On August 7, President Trump signed an Executive Order directing the DOL, the SEC, and Treasury (including the IRS) to review and revise guidance to facilitate the inclusion of alternative investments—such as private equity, cryptocurrency, and other non-traditional assets—in defined contribution retirement plans. The Executive Order follows action in May of this year by the DOL to rescind its 2022 guidance that discouraged fiduciaries from including cryptocurrency options in 401(k) retirement plans.

July was an exciting month for employer-sponsored health and welfare benefits. Many of the changes discussed provide plan sponsors with increased flexibility to optimize benefits.

The much-anticipated One Big Beautiful Bill Act (the OBBB) was signed into law on July 4, 2025. 

On June 30, 2025, the Supreme Court granted certiorari in M & K Employee Solutions, LLC, et al. v. Trustees of the IAM National Pension Fund, No. 23-1209. This case will resolve a circuit split over when assumptions used to determine withdrawal liability must be adopted.  

With the passage of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) and the subsequent SECURE 2.0 Act (SECURE 2.0) in 2022, the last few years have been a time of upheaval, confusion, and ongoing disruption within the retirement plan space. 

While recent regulatory developments—including the Departments’ nonenforcement policy, proposed legislation, and new transparency rules—offer employers and plan fiduciaries greater flexibility and potential relief, they also underscore the need for continued vigilance. From ensuring compliance with longstanding MHPAEA obligations to evaluating benefit design changes, managing PBM relationships, and addressing nondiscrimination concerns in self-funded plans, stakeholders must stay proactive and informed to navigate the evolving health and welfare benefits landscape effectively.While recent regulatory developments—including the Departments’ nonenforcement policy, proposed legislation, and new transparency rules—offer employers and plan fiduciaries greater flexibility and potential relief, they also underscore the need for continued vigilance. From ensuring compliance with longstanding MHPAEA obligations to evaluating benefit design changes, managing PBM relationships, and addressing nondiscrimination concerns in self-funded plans, stakeholders must stay proactive and informed to navigate the evolving health and welfare benefits landscape effectively.

The IRS recently released Revenue Procedure 2025-19 with the 2026 inflation-adjusted amounts for health savings accounts (HSAs), high-deductible health plans (HDHPs), and excepted-benefit health reimbursement arrangements (HRAs).

In Cunningham v. Cornell University, the U.S. Supreme Court rejected efforts by plan fiduciary defendants, previously endorsed by several courts of appeals, to require plaintiffs to allege more than the mere existence of a contract with a service provider to withstand early motions to dismiss prohibited transaction claims in excessive fee lawsuits. The decision appears likely to lead to increased litigation, and plan fiduciaries should review their processes and procedures to ensure plans are only paying reasonable fees for necessary services.

Amid a recent resurgence in litigation targeting pension risk transfer (PRT) transactions, plan sponsors and fiduciaries should take extra care in selecting annuity providers to ensure compliance with fiduciary duties. Read on for a summary of recent developments and insights.   

Effective January 15, 2025, the United States Department of Labor increased its ERISA health and welfare civil penalties for noncompliance. 

Since late 2023, there has been a surge in litigation challenging the use of forfeitures in retirement plans.

Earlier this year, the Department of Labor (DOL) announced updates to the Voluntary Fiduciary Correction Program (VFCP), which are set to take effect March 17, 2025. As an alternative to the more onerous VFCP Application Process, certain common plan errors will soon be eligible for a streamlined self-correction process, known as the Self-Correction Component (SCC). In addition, the DOL amended the associated Prohibited Transaction Exemption, PTE 2002-51, to extend relief to certain corrections under the new SCC.

In the past few months, group health plans have experienced a surge of litigation challenging premium surcharges based on participants’ tobacco use.

In recent weeks, fires have devastated communities in and around Los Angeles, California. 

As 2025 begins, we wanted to highlight several important changes that will impact employer-sponsored group health plans.

The Internal Revenue Service recently published limits for 2025 in Revenue Procedure 2024-40. Below we have outlined health and welfare limits for 2025 and the changes in those limits from 2024.