DOL tells court that entering a pension risk transfer is a settlor decision, not a fiduciary act

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litigation

The amicus brief presents the position that entering a pension risk transfer is a settlor function and does not trigger ERISA fiduciary duties until selection of an annuity provider.

Source summary

The U.S. Department of Labor filed an amicus brief in Konya v. Lockheed Martin to clarify legal standards for pension risk transfers (PRTs), arguing that ERISA gives fiduciaries deference when they act with prudence and loyalty and that decisions to annuitize are a settlor function reserved for plan sponsors. The brief contends the plaintiffs lack Article III standing, warns that litigation-driven second-guessing could impede employers from derisking, and represents the department’s first public position on PRTs since a surge of related class actions began in 2024.

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Latest fact check

The U.S. Department of Labor’s own news release describing its amicus brief in Konya v. Lockheed Martin states that “the decision to enter a pension risk transfer is a settlor function reserved for the plan sponsor” and that, as a result, it “does not implicate fiduciary duties under ERISA,” which are “only triggered when the plan sponsor chooses an annuity provider.” This language directly matches the quoted statement about what the Department’s brief says. While the underlying amicus brief PDF was not retrieved here, the Department’s official summary is an authoritative description of its contents.

Verdict: True, because the Department of Labor’s official release explicitly attributes this exact position to its amicus brief, matching the claim verbatim.

Sources

Timeline

Update · Jan 10, 2026, 05:37 AMTrue
The U.S. Department of Labor’s own news release describing its amicus brief in Konya v. Lockheed Martin states that “the decision to enter a pension risk transfer is a settlor function reserved for the plan sponsor” and that, as a result, it “does not implicate fiduciary duties under ERISA,” which are “only triggered when the plan sponsor chooses an annuity provider.” This language directly matches the quoted statement about what the Department’s brief says. While the underlying amicus brief PDF was not retrieved here, the Department’s official summary is an authoritative description of its contents. Verdict: True, because the Department of Labor’s official release explicitly attributes this exact position to its amicus brief, matching the claim verbatim.
Original article · Jan 09, 2026
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