Duke Beats Retirement Plan Forfeiture Lawsuit in North Carolina

Duke University escaped a proposed class action challenging how it handles forfeited contributions in its workers’ retirement plan when a North Carolina federal judge followed the “weight of authority” dismissing similar allegations.

The lawsuit fails because it essentially argues for a “per se” rule that employers commit fiduciary breach when they use 401(k) plan forfeitures to fund their own contributions to the plan, Judge Catherine C. Eagles said Monday in an opinion dismissing claims brought by plaintiff Frances Beroset. The terms of Duke’s retirement explicitly allow the school to use forfeitures in this way, Eagles said.

“Ms. Beroset ...