Ochsner Clinic Beats Claims of Improper 401(k) Forfeiture Use

Ochsner Clinic Foundation defeated litigation challenging how the Louisiana health-care system handles forfeited contributions in its 401(k) plan, but workers can amend their complaint and try again.

The case’s legal theory is flawed because it would require retirement plan fiduciaries to maximize workers’ financial benefits, which isn’t a duty imposed by federal benefits law, Judge Jane Triche Milazzo said Monday for the US District Court for the Eastern District of Louisiana. Milazzo cited recent cases dismissing 401(k) forfeiture mishandling claims raised against HP Inc. and Honeywell International Inc., saying she “aligns with the majority” of courts that have considered ...