The Employee Retirement Income Security Act (ERISA), enacted in 1974, remains the cornerstone of retirement and welfare benefit governance in the United States. But the challenges facing ERISA-covered plans today look very different from when the law was passed. Increased longevity, shifting labor markets, the decline of traditional pensions, volatile investment landscapes, and heightened regulatory scrutiny all put pressure on employers and plan sponsors. Compliance is no longer enough. Participants expect digital tools, transparency, and personalized support to make informed decisions. Employers, meanwhile, must strike a balance between regulatory obligations and delivering meaningful retirement outcomes. Added to this are mounting risks around cybersecurity, fiduciary liability, and market unpredictability, all of which complicate the retirement equation.

These shifts demand more than plan administration—they require integrated expertise, advanced technology, and participant-centric engagement. That’s where Alight, one of the largest providers of retirement and benefits services, has stepped in as a trusted partner to both employers and employees. Serving over 35 million people and their dependents, Alight has become a central player in ERISA-related retirement services. The company provides an expansive range of solutions: defined benefit plan administration, retiree health management, investment advisory programs, compliance support, and digital tools for financial wellbeing. Its approach stands out for combining deep actuarial and regulatory expertise with a participant-first digital strategy. For employers, Alight mitigates fiduciary risk, ensures compliance with Department of Labor and IRS standards, and supports efficient plan operations. For employees and retirees, it provides clarity, modeling, and guidance—turning often-complex benefits into actionable retirement planning. As CEO Dave Guilmette emphasized when he took the helm in 2024, Alight’s long-term strategy is grounded in technology transformation. “Our technology transformation has laid the groundwork for us to emerge as a much stronger company with a significantly improved financial profile,” he noted.

Defined Benefit Plan Administration

Despite the steady decline of defined benefit (DB) pensions in the private sector, many employers still carry legacy plans that require careful stewardship. These plans pose unique challenges: intricate rules, actuarial assumptions, and strict compliance oversight.

Alight helps plan sponsors navigate this terrain by managing everything from calculations to third-party coordination. The company supports pension de-risking strategies, such as lump-sum offers and annuity purchases, ensuring compliance while protecting participant outcomes. Its digital portals give participants a clear view of projected benefits and retirement income, making a complex asset tangible and easier to plan around. The focus isn’t just administrative—it’s strategic. Employers turn to Alight not only to ensure accuracy but also to chart long-term strategies for DB plan sustainability and cost efficiency.

Health coverage in retirement is often one of the most confusing and financially significant decisions for retirees. Navigating Medicare options, prescription coverage, supplemental plans, and employer-provided retiree health benefits can overwhelm even financially savvy individuals. Alight has built strong capabilities in Retiree Health Solutions—helping plan sponsors manage obligations while equipping retirees with decision-support tools and guidance. Its advisors and technology platforms walk retirees through plan comparisons, enrollment, and cost modeling, ensuring that healthcare coverage aligns with both financial capacity and personal needs. This dual-focus approach—helping employers deliver on commitments while empowering retirees to make informed choices—has become one of Alight’s differentiators in the marketplace.

Investment Advisory and Income Beyond Retirement

One of the most pressing questions for today’s workforce isn’t how to save, but how to turn savings into sustainable income. With traditional pensions less common, employees are increasingly responsible for generating retirement income through defined contribution (DC) plans like 401(k)s. Alight addresses this through its Investment Advisory Services, offering participants professional advice and management programs. Its digital platforms allow employees to model various retirement scenarios, incorporating savings, external income sources, and investment strategies. The “Income Beyond Retirement” tool is designed to close the gap between asset accumulation and income planning, enabling participants to visualize how their money translates into monthly income over a lifetime.

By making investment choices more tangible and less abstract, Alight fosters confidence among participants and helps employers encourage stronger saving behaviors. The ERISA environment is increasingly defined by regulatory complexity and legal scrutiny. Employers face potential liability not only for missteps in plan administration but also for cybersecurity breaches, inaccurate reporting, or perceived failures in fiduciary governance. Alight provides compliance assurance through robust recordkeeping, reporting, and claims management. Its platforms are built with cybersecurity safeguards to protect sensitive participant data, a growing concern as cyberattacks increasingly target financial services and benefits ecosystems. By delivering both technological protection and fiduciary guidance, Alight helps employers minimize litigation risks while enhancing participant trust.

Elevating Employee Engagement and Financial Wellbeing

Retirement outcomes depend not only on compliance and administration but also on how engaged employees are with their benefits. Unfortunately, research shows that many employees lack confidence in their retirement preparedness or feel overwhelmed by benefit decisions. Alight addresses this with educational resources, financial wellness programs, and counselor access designed to demystify retirement planning. Its Worklife® platform, enhanced in 2025, brings together retirement savings, IRA options, and holistic financial health insights into one digital experience. This integration reflects Alight’s philosophy that retirement readiness cannot be separated from overall wellbeing. When participants understand their benefits and see clear pathways to their retirement goals, they are more likely to save adequately, make sound investment choices, and feel secure about their futures.

Under the leadership of Dave Guilmette, Alight has sharpened its strategic direction toward becoming a fully technology-enabled benefits partner. He remarked, “Working closely with our executive team and Board of Directors, I already see many opportunities for us to move even faster in addressing these evolving client needs and reorienting around technology-rich services that enhance our competitiveness and deliver even more value for Alight’s clients.” This vision reflects not only a push for digital transformation but also a commitment to integrating retirement, health, and wellbeing on a single continuum. It’s a recognition that employees don’t view their benefits in silos—and neither should providers.

The Future of ERISA Benefits

The future of ERISA-governed plans will be shaped by demographic shifts, regulatory changes, and evolving expectations. Baby boomers are retiring in record numbers, younger generations are skeptical of traditional retirement promises, and employers must adapt to tighter fiduciary oversight and more demanding employees. In this environment, companies like Alight will play a pivotal role. Their ability to provide end-to-end retirement and health solutions, coupled with strong compliance frameworks and digital tools, makes them essential partners in helping employers meet obligations and employees achieve retirement security.

As retirement continues to transform from a distant aspiration to a pressing personal and financial reality, Alight’s mission is clear: to bring confidence, clarity, and purpose to the retirement journey.

ERISA’s complexity, coupled with today’s shifting economic and regulatory realities, demands more than traditional plan administration. It requires partners who can balance fiduciary excellence with participant empowerment, risk management with engagement, and compliance with innovation. Alight embodies this balance. From pension management to retiree health, from compliance oversight to financial wellness, the company is redefining what it means to deliver ERISA and retirement benefit services. With technology at the center and people at the core, Alight is not just helping employers meet obligations—it’s helping millions of Americans move toward retirement with greater security and confidence.