Judges Appear Split Over Siemens, Honeywell 401(k) Forfeitures

Third Circuit judges weighing how Honeywell International Inc. and Siemens Corp. handled forfeited 401(k) money appeared fractured during Wednesday arguments, with two members of the three-judge panel showing willingness to revive the cases.

Judge Peter J. Phipps seemed sympathetic to the underlying idea that 401(k) plan fiduciaries can breach their duties if they have discretion over how to use forfeitures and make a choice that benefits the company instead of workers. He questioned why a retirement plan would ever be written to allow a choice over forfeiture usage if the company planned to use them for its own benefit, instead ...