WakeMed Joins List of Employers Beating 401(k) Forfeiture Claims

WakeMed Health & Hospitals defeated a proposed class action by a former employee who accused the North Carolina-based health-care system of mishandling the retirement plan contributions forfeited by departing workers.

WakeMed’s decision to use retirement plan forfeitures to make its employer contributions to the plan was neither disloyal nor imprudent under the Employee Retirement Income Security Act, Judge James C. Dever III said Thursday for the US District Court for the Eastern District of North Carolina. WakeMed followed the terms of its plan and provided plaintiff Jeanette Tillery with her promised benefits, Dever said, dismissing the case and ...