HP Gets Support in Ninth Circuit 401(k) Plan Forfeiture Appeal

HP Inc.'s effort to kill an appeal over the forfeited money in its 401(k) plan drew support from a nonprofit law firm, which filed a brief calling the technology company’s practices lawful and appropriate.

The HP employees’ legal theory contravenes the text and purpose of the Employee Retirement Income Security Act and would discourage employers from offering retirement plans in the first place, Washington Legal Foundation, a firm focused on free enterprise and limited government, said in a Tuesday amicus brief. ERISA allows employers to use 401(k) forfeitures to reduce the contributions they must make to their plans, and ...