Vol.7, January 2026

January Benefits Rundown: The next ERISA fee battleground + 401(k) retirement income options

Graphic for Mindy’s Benefits Rundown January 2026 issue with a "Play Now" button.

As we start the new year, many plan sponsors are revisiting a question that’s getting more attention lately: what role should retirement income options play in a 401(k) plan? It’s a deceptively simple question with a lot of underlying complexity, from participant needs to product structures to the long-term implications for your plan.

In this month’s video, I share a few thoughts on how to approach the evaluation process—and what to keep an eye on as you explore the options available through your recordkeeper.

‘Til next time,

Mindy Zatto, FSA, EA, FCA, MAAA, MSPA
Founding Principal, SBA

This Month at SBA

A quick look at what’s new, noteworthy, or just plain useful from our team.

Hand with magnifying glass auditing a contract, representing the rise of ERISA litigation for voluntary benefits.

Voluntary benefits are becoming the next ERISA fee battleground

A new wave of ERISA litigation is calling attention to voluntary benefits—an area many employers have long viewed as low-risk. In this piece, Andy Clonts explains why voluntary programs are drawing scrutiny, how compensation structures and loss ratios can create fiduciary exposure, and why plan sponsors should revisit the governance and financial mechanics behind these offerings before regulators or plaintiffs do.

Strengthening ERISA oversight

For a large U.S. utility company, much of the work behind its complex ERISA plans relied on institutional knowledge rather than documented process. Execution had been consistent, but processes and oversight varied greatly across health, pension, and retirement plan administration. Our challenge was to conduct a thorough assessment of each plan to identify gaps, all without interrupting operations.

Ask the Principals

Our leadership team tackles tough questions from plan sponsors like you.

Close-up of hands holding an open, lined spiral notebook and a pen at a wooden desk.

Is terminating our pension plan the right move?

A: Deciding to terminate a pension plan is as much a strategic decision as it is a financial one. While termination can reduce administrative burdens and ongoing costs, it also requires an upfront commitment of time, capital, and internal focus. The right decision depends on funding status, accounting position, participant demographics, data quality, market conditions, and how the pension plan fits into your organization’s long-term objectives.

SBA helps plan sponsors assess whether termination is a viable option—now or in the future—by analyzing liabilities, identifying de-risking opportunities, and developing multi-path strategies based on economic conditions and internal priorities. Even when a plan isn’t ready for termination today, having a plan to get there gives sponsors flexibility and control over future decisions.

Tags: plan funding, plan liabilities, plan management, plan termination

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