Louisiana Health System Defeats 401(k) Forfeiture Suit, Again

Louisiana health-care system Ochsner Clinic Foundation is free from litigation challenging how it handles forfeited contributions in its 401(k) plan, after a federal judge dismissed the case for the second and final time.

The workers’ amended complaint “disingenuously misstates the language of the Plan” and largely repeats the same allegations that were previously found lacking, Judge Jane Triche Milazzo said Tuesday for the US District Court for the Eastern District of Louisiana. Ochsner had discretion over whether to make matching contributions to workers’ 401(k) accounts, and its choice to fund these contributions with plan forfeitures was both lawful and ...