BENEFITS DIGEST

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A publication of The Inner Firm

Monday, August 10, 2026

№ 27

17 items · ~4 min read

Retirement Plans (6)·Health & Welfare (3)·Leave & Time Off (1)·Case Commentary (5)·Also Noteworthy (2)

The Two Things

The First Thing: Plan sponsors notched a win in the pension de-risking wars, as a Pennsylvania federal court dismissed Schoen v. ATI, the class action challenging ATI's $1.5 billion annuity buyout with Athene, holding that retirees whose checks keep arriving have no standing to sue. The dismissal deepens a district court split already headed for the Second and Fourth Circuits, and the court itself called it a close call. Nixon Peabody's ERISA litigation team breaks down the ruling and what sponsors should be documenting before their next risk transfer closes.

The Second Thing: Treasury and the IRS have announced they will propose regulations implementing the Saver's Match, the SECURE 2.0 program that will pay federal matching contributions of up to $1,000 directly into the retirement accounts of eligible low- and moderate-income savers beginning with 2027 tax years. Comments are due October 5, and Friday's Kelsey's Korner column suddenly reads like a preview.

Retirement Plans (6)

Notice 2026-48: Treasury and IRS Announce Intent to Propose Saver's Match Regulations
IRS 2026-08-07

Treasury and the IRS announce their intent to propose regulations implementing the Saver's Match program under section 6433, the SECURE 2.0 provision paying federal matching contributions of up to $1,000 directly into the retirement accounts of eligible low- and moderate-income savers for tax years beginning after December 31, 2026. The notice requests comments by October 5, 2026 on eligibility, claiming and payment mechanics, financial-institution reporting, and treatment of erroneous payments.

Emerging Risks for Retirement Plan Sponsors
NAPA Net Daily 2026-08-07

Today, plan sponsors face a changing environment, where industry consolidation, private equity ownership, proprietary product development, and participant monetization strategies are creating new fiduciary challenges.

Health & Welfare (3)

GLP-1 Medications in the United States: The Status of Coverage, Utilization Management, and Cost in a Rapidly Evolving Market
Milliman 2026-08-06

A Milliman white paper on the GLP-1 market's dramatic growth, with U.S. spending rising from $13.7 billion in 2018 to $71.7 billion in 2023, now the largest and fastest-growing drug category. The authors examine payer coverage policies, utilization management, and cost containment, and urge payers to evaluate total cost of care, adherence durability, and long-term clinical return on investment rather than drug unit costs alone.

Leave & Time Off (1)

Case Commentary (5)

Schoen v. ATI: A “Close Call” Dismissal That Deepens the Pension De-Risking Split
Nixon Peabody 2026-08-07

A Pennsylvania federal court dismissed a class action challenging ATI's $1.5 billion pension risk transfer to Athene, holding under Thole that retirees whose monthly benefits remain unchanged lack standing, and that the alleged risk of future harm was too speculative. The decision deepens the district-court split over Athene-related de-risking suits, with standing rejected in Schoen, Camire, and Bueno but sustained in Konya and Doherty, both now on interlocutory appeal to the Fourth and Second Circuits. Nixon Peabody's ERISA litigation team advises sponsors to document annuity-provider selection under the DOL's six-factor guidance before closing, since no court has yet reached the fiduciary merits on a developed record.

Ninth Circuit Again Applies Effective Vindication Doctrine in Finding ERISA Plan Arbitration Clause Unenforceable
Mayer Brown 2026-08-07

In Pover v. Capital Group Companies, the Ninth Circuit held a 401(k) plan's arbitration clause unenforceable under the effective vindication doctrine because it barred participants from pursuing representative claims and the plan-wide relief ERISA section 409(a) makes available. Mayer Brown advises sponsors to review existing arbitration language, preserve all arbitrability arguments at the district court, and weigh whether arbitration's benefits still outweigh its limits for plan-wide monetary disputes.

Smoke Signals: Tobacco Cessation Program Litigation Update
Boutwell Fay 2026-08-06

There are now more than 75 tobacco surcharge class actions pending in federal courts across the nation. Since our last article in January 2026, tobacco cessation litigation continues to heat up as cases have now spread to the First, Second, Sixth, Seventh, and Eight Circuit Courts of Appeal.

Also Noteworthy (2)