Legal

The proposed class action ERISA lawsuit centers on two poorly performing funds offered by the $9 billion 401(k) plan covering more than 27,000 current and former employees of the giant telecommunications equipment maker.

These retirement plans meet the legal requirements and the cost for a pre-approved plan is less than for an individually designed plan, according to the IRS.

The North Carolina-based hospital system was sued by a former employee, alleging WakeMed used “forfeited funds to reduce Company contributions to the Plan” instead of using the funds to reduce "the amounts charged to Plan participants” for administrative services.

The judge accepted the argument that one rollover transaction cannot start an "ongoing advice relationship."

Shortly after the Supreme Court ruled on behalf of employees in the Cornell University excessive fees case, now comes a similar suit filed by Stifel employees over its profit sharing 401(k) plan.

Since there have been more than 50 similar 401(k) forfeiture lawsuits filed recently, the Department of Labor has weighed in on the HP lawsuit, now on appeal: “A fiduciary’s use of forfeited employer contributions … alleged in this [HP] case … would not violate ERISA.”