Knight-Swift Transportation Beats 401(k) Forfeiture Use Lawsuit

Participants in Knight-Swift Transportation Holdings Inc.'s 401(k) plan failed to convince a federal judge that the transportation and logistics company violated federal benefits law by using forfeited plan money to fulfill its contribution obligations.

A retirement plan sponsor’s decision to put forfeitures toward its own required contributions, “without more,” doesn’t qualify as a fiduciary breach under the Employee Retirement Income Security Act, Judge Steven P. Logan said in an order docketed Wednesday in the US District Court for the District of Arizona. Holding otherwise would contravene “decades of federal regulations suggesting that such a decision is entirely permissible,” Logan said, ...