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Few would argue the 401(k) plan system works perfectly, and former Assistant Secretary of Labor for Employee Benefits Lisa Gomez isn’t among them.
That said, multiple rounds of legislation and near-continuous regulatory reforms over the past 10 to 15 years have improved outcomes for the typical retirement saver, Gomez told Retirement Upside. The prevalence of automatic enrollment, for example, has boosted participation rates among the growing employee population with access to a plan, and the widespread embrace of professionally managed investment options like target-date funds and managed accounts means far fewer investors carry extreme asset allocations.
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Like other retirement industry veterans, she also sees room for improvement, especially when it comes to providing 401(k) plan investors with tailored advice linked to their household financial situation. That’s one reason why Gomez, who left the federal government in January 2025, is now serving as a strategic advisor to Pontera, a wealthtech firm that helps advisors manage and rebalance clients’ held-away retirement accounts. Pontera executives said her insights have been invaluable as the firm sets its strategy, establishes key relationships with regulators and navigates a well-documented public dispute with Fidelity.
Ultimately, Gomez is optimistic about the future of the 401(k) plan industry and its ability to help Americans prepare for and navigate retirement, but there’s a lot of work to be done, including by financial advisors who hope to grow their retirement plan businesses. Retirement Upside sat down with Gomez to chat about the state of the industry.
It must have been an honor to be nominated and serve as the head of the Employee Benefits Security Administration. Why do you think you were asked to serve, and now that you are out of the government, how do you reflect back on that experience?
Yes, it was. For the first 30 years of my career, I was an attorney in private practice in New York, representing plan sponsors and other fiduciaries. It was at a relatively small firm with about 30 attorneys, and only a handful of us were experts in benefits law under the Employee Retirement Income Security Act. So as a result, I covered everything: launching new plans, drafting plan documents, meeting disclosure requirements, crafting participant communications, managing claims and appeals. I was living and breathing the day-to-day operations of retirement plans, and my clients were in all different industries. It was great preparation for the job at EBSA.
When the opportunity to be considered to lead EBSA came up, it wasn’t something I had even thought about. I hadn’t been in government or in Washington. I was a New York benefits attorney. Of course, I watched what was happening in D.C., but I hadn’t thought about being part of it all. Looking back on it, it was a fantastic experience to feel like you are directly contributing to something important. I always strove to keep the plan sponsors and the participants front of mind as we made decisions and assessed how to proceed on critical topics.
I believe we made a lot of progress. A month into my tenure, we did the so-called “ESG” rule, and about a month or so later, the Secure 2.0 Act was passed, which gave us a whole lot of stuff to work on. And then, of course, we were working on the fiduciary rule process, which is still playing out right now, as you know. Personally, it was really meaningful to be a part of all of that.
At a high level, would you say that things have improved for the typical saver trying to use 401(k) plans to prepare for retirement in the last 10 or 15 years?
Yes, I think so. There have been real improvements, especially with plan features like auto-enrollment and the added flexibility in the system today. I’m thinking about things like better access to loans, more flexible hardship withdrawals, the inclusion of 401(k)-linked emergency savings, student loan repayment matching contributions, etc. There’s also more education available and more focus on financial wellness. That’s all positive to see. There’s more to be done, but yes, I think things are improving. I’m a glass-half-full person.
In terms of making further progress, the gap in plan quality is an issue. Larger employers have more staff with the time and expertise to give benefits, both retirement and health care, the attention it needs. They have the ability to do more and put real thought into their benefits strategy. Smaller employers may want to offer great plans, but they may not have the time, knowledge or staff to get it done. They may rely more upon external service providers to do it for them. The plan might not be getting a lot of attention, and it results in things like higher fees or a lack of some features.
Another issuis a lack of access to high-quality, fiduciary advice for more participants. Even when savers are working with their own advisor outside the plan, it’s not always easy for the advisor to help them make best use of the 401(k). Traditionally, they need to print out documents and share them with the advisor, and then go back and take action in their account. It’s like, what year are we in?
How did you become aware of Pontera, and what made you decide to work with the firm?
I first became aware of Pontera while at the DOL. We often get different stakeholders coming in. Sometimes they’re coming in with complaints, concerns or regulatory stuff. Other times it’s firms like Pontera coming in to make sure we’re aware of what’s out there and what types of products and services they’re working on. It’s a healthy part of the system, having a dialog between the regulators and the regulated. They came in and I got to know them a little bit, but frankly, we had a lot of people coming in and lots of things to work on. But I recall being interested in the way they are connecting data and trying to bridge the advice gap I was just talking about. Advisors need to be able to know what is in the best interests of the retirement saver, and this technology helps them do that.
What can you tell us about the dispute between Fidelity and Pontera?
What I will say is that Pontera’s technology facilitates the delivery of advice in a safe and secure way. It’s an approach that is accepted in so many other walks of life, if you think about it. You connect your credit card to your bank account without a problem. Your medical history is accessible regardless of what doctor you go to. This type of connectivity is something we have all come to expect in so many other parts of our lives. It makes so much sense in the retirement space.
I believe the pushback Pontera has seen has been about a misunderstanding of how the product works. This is about making things work better for people and helping them get the most out of their 401(k) by giving their advisor a holistic view of their finances, regardless of what recordkeeper the client’s employer happens to choose. Everyone should be able to support that goal.
This post first appeared on Retirement Upside. To receive actionable insights for financial advisors guiding clients through the strategies, products, and policy shifts shaping retirement outcomes, subscribe to our free Retirement Upside newsletter.
