Courts nationwide are poised to address several ERISA issues in 2026 that could have meaningful implications for employers, plan sponsors and fiduciaries.
Co-founding partner Carol Buckmann shared her insights with Bloomberg Law and Law360 for recent coverage highlighting how both federal appeals courts and the U.S. Supreme Court are preparing to weigh in on issues ranging from 401(k) forfeitures and health plan tobacco penalties to pension withdrawal liability and fiduciary standards for retirement plan investments.
At the appellate level, courts are considering whether long-standing employer practices violate ERISA, such as using forfeited 401(k) contributions to offset employer contributions. Buckmann noted that the U.S. Department of Labor has signaled skepticism toward these claims, which could prove persuasive.
“Courts are now issuing consistent decisions saying participants aren’t entitled to a windfall just because a plan has forfeitures; they’re entitled to the match the plan provides,” Buckmann said.
At the Supreme Court, justices will hear arguments that could affect how withdrawal liability is calculated for employers exiting multiemployer pension plans. The court will also decide whether participants must meet higher pleading standards when alleging excessive fees or underperforming investments in 401(k) plans.
With multiple decisions expected in 2026, employers and plan fiduciaries should be watching closely as the courts clarify where ERISA’s boundaries lie.
Read the full articles in Bloomberg Law and Law360.