A federal judge in Northern California stated HP Inc. doesn\u2019t violate the Employee Retirement Income Security Act (ERISA) by using forfeited 401(k) money to pay contributions it\u2019s required to make to the plan, by dismissing a proposed class action.<\/p>\n
HP had argued that \u201csettled law expressly allows the use of forfeited amounts to reduce employer contributions,\u201d pointing to two Treasury regulations for that view. In addition, HP cited a \u201cnew\u201d proposed Treasury regulation that affirmed the right to use forfeitures to pay administrative expenses, to increase participant benefits, OR to reduce employer contributions.<\/p>\n
The judge rejected the plaintiff\u2019s theory that using forfeitures to offset contributions instead of paying administrative expenses is a breach.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" A federal judge in Northern California stated HP Inc. doesn\u2019t violate the Employee Retirement Income Security Act (ERISA) by using forfeited 401(k) money to pay contributions it\u2019s required to make to the plan, by dismissing a proposed class action. HP … Continue reading