Thermo Fisher Calls 401(k) Forfeiture Suit Flawed, Speculative

Thermo Fisher Scientific Inc. defended its practice of using former employees’ forfeited retirement savings to reduce its 401(k) plan contributions, saying a new lawsuit challenging this practice “flies in the face” of basic legal principles under ERISA.

Federal regulators have long acknowledged an employer’s ability to use 401(k) forfeitures to satisfy its own obligation to contribute to the plan, Thermo Fisher said Thursday. The company has no fiduciary duty under the Employee Retirement Income Security Act to put these forfeitures toward the administrative expenses charged to workers, and plaintiff Konstantina Dimou’s argument to the contrary is an attempt to seek ...