Season 5 Episode 2
A “new” entrant to the forfeiture reallocation suit “suite”—and a decision in favor of fiduciary defendants. Nevin & Fred review the latest developments.
Yet another 401(k) forfeiture fiduciary breach suit has been filed—but there are some key differences:
- The plaintiffs are represented by the law firm of Schlichter Bogard, LLC.
- The plan involved was the largest targeted by this type of litigation to date (nearly $8 billion)
- The plan document language prohibited use of forfeitures to offset employer contributions before offsetting administrative expenses (at least according to the suit).
And then there is a case that has been through several rounds of adjudication—and though winning, has had to keep going back to court. But HP finally prevailed, and though the actions regarding the application of forfeitures were seen as fiduciary decisions—well, there was a bit of a “new” twist in how the judge viewed them.
In this episode Nevin (Adams) & Fred (Reish) examine the issues and potential implications, as well as a quick review of some recent updates.
Episode Resources
Schlichter Targets Massive 401(k) Plan With Forfeiture Suit
401(k) Fiduciaries Fend Off Forfeiture Reallocation Suit
Some “new” News:
DOL Pushes Pause on 401(k) Fiduciary Rule Suits
Breaking News: White House Nominates Next EBSA Assistant Secretary