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ARTICLE · 06 APRIL 2026

Just How Stable Are Stable Value Funds?

Bryan Cave Leighton Paisner
Bryan Cave Leighton Paisner
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Bryan Cave Leighton Paisner

Bryan Cave Leighton Paisner

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The Employee Retirement Income Security Act (ERISA) imposes significant responsibilities on fiduciaries in managing retirement plans.

United StatesEmployment and HR

The Employee Retirement Income Security Act (ERISA) imposes significant responsibilities on fiduciaries in managing retirement plans. Historically, stable value funds may have been seen as an uncontroversial option for defined contribution retirement plans to include in their investment menus, but recently there has been an uptick in litigation questioning the selection of particular stable value funds. Many of these lawsuits have focused on the specific fund's requirements, restrictions, or performance compared to other, similar products available in the market. However, some of these lawsuits have suggested that stable value funds may not be safe investments at all, citing potential default risks that plan fiduciaries should take into account when selecting and monitoring these investments. This article summarizes a few of the key risks that may make stable value funds less stable than you once thought.

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