Legal

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.”

The Supreme Court will hear a case against the IAM National Pension Fund, which could affect most of the nation’s 1,400 multiemployer plans.

After a jury trial awarded 26,000 bank employees $38 million – short of the damages sought – in an ERISA fiduciary breach lawsuit in April, the leading retirement plan provider agreed to the extra $10 million to resolve the suit.