Ochsner Clinic Sued by Workers Over 401(k) Plan Forfeiture Use

Louisiana health-care system Ochsner Clinic Foundation mismanages its 401(k) plan by using money forfeited by departing workers for its own benefit, current and former employees alleged in a proposed class complaint.

Ochsner had discretion to use 401(k) forfeitures to pay for the plan’s administrative expenses, but it instead opted to put this money toward the contributions it was required to make to participants’ accounts, the workers said in a complaint filed March 14 in the US District Court for the Eastern District of Louisiana. This benefited Ochsner at the expense of its workers’ retirement savings and violates the health system’s ...