Private equity investments raise a second layer of fiduciary difficulty because they are not simply harder to compare. They are also harder to value, harder to redeem, and harder to explain to participants who may assume daily-priced plan options operate under familiar public-market rules.
Tag "Peter Gulia"
Ongoing forfeiture lawsuits involving major plans are reshaping how courts evaluate fiduciary oversight. Sponsors who rely on routine processes may discover that governance gaps create legal exposure for committees and financial harm for participants.
Cunningham v. Cornell is testing whether traditional 401k fiduciary compliance truly protects plan sponsors. Courts and regulators are probing governance gaps, personal liability, and participant harm more aggressively than ever.
Fiduciary litigation did not let up in 2025, and 2026 is seeing even more refined theories targeting 401k plans. Plan sponsors must look beyond procedural checklists to avoid the top governance pitfalls that trigger personal liability and erode participant savings.
Seasoned advisors caution plan sponsors not to confuse delegation with disappearance. Every fiduciary duty can be shared. None can be erased.
Risk capacity anchors 401k advice in hard data—income stability, net worth, liquidity, and retirement timeline. Unlike tolerance, which shifts with market moods, capacity reflects what participants can afford to lose, aligning with ERISA’s fiduciary duties.
The relative quickness of this one-two shot from the District Courts suggests an obvious flaw in the new Rule.
It’s too easy for plan sponsors to get lost in the weeds when dealing with plan minutia. Yes, “the buck stops here” reality can overwhelm many. Delegation is the key. It’s also the Achilles Heel. This is where the magic word emerges.
On the face of it, American Airlines seemed to follow its documented process. So, what did the company do wrong?
To make the procedure more agonizing, the transition away from Chevron may feel like death by a thousand cuts. But the snail-like process of the courts has its benefits.
