Many 401(k) plans allow participants to invest in a number of funds, including a “stable value” fund.

A recent court case, involving Maersk’s 401(k) plan, just decided last week, focused on their stable value fund.

On July 15, 2026, the U.S. District Court for the District of Massachusetts largely dismissed a proposed class action against Maersk and the fiduciaries of its 401(k) plan. Participants alleged that the plan breached its fiduciary duties by offering an underperforming stable value fund and engaging in improper transactions with service providers. The court found that the complaint was based on a critical factual error: the plaintiffs challenged the performance of a John Hancock fixed annuity product that was not actually offered by the plan.

The mistake stemmed from the plan’s audit notes, which incorrectly identified the stable value fund as a John Hancock product rather than the New York Life fund that was actually offered. As a result, the court dismissed most of the claims, while allowing the plaintiffs an opportunity to seek leave to amend their complaint.

Although the decision is favorable to the defendants, it ultimately turned on an unintended technical glitch in the plan’s documentation. The case underscores the importance of working with ERISA counsel to ensure consistency across all plan materials, including audit reports.

Some other practical to-do’s relating to stable value products:

  • Review participant disclosures, audit reports, Form 5500 attachments, and other plan documentation for consistency in how stable value products are described.
  • Ensure 401(k) plan committees are reviewing and maintaining a robust fiduciary process for stable value and capital preservation investment options, including addressing crediting rates, wrap fees, contract terms, and issuer conflicts.
  • Understanding the structure, provider relationships, and crediting-rate methodology of any stable value product offered under the plan.
  • Documenting the committee’s evaluation of investment alternatives and monitoring activities.
  • Working closely with investment advisers and service providers to ensure committee members understand the products being offered and their role in the plan lineup.
  • Working with ERISA counsel to review their plan’s investment lineup, service provider relationships, and documentation practices, particularly where the plan’s recordkeeper or trustee is affiliated with the stable value fund provider.

If you have questions about this case, the broader concerns of stable value funds, or your plan’s fiduciary compliance practices, please contact the Davis+Gilbert attorney with whom you regularly work.