Washington, D.C., July 10, 2025 – On Wednesday, July 9, 2025, The ERISA Industry Committee (ERIC) and a coalition of trade associations and business groups filed an amicus brief urging the U.S. Court of Appeals for the Ninth Circuit to uphold a decision issued by the U.S. District Court for the Northern District of California in Hutchins v. HP, Inc., (Hutchins). This is the first appeal in a growing wave of class actions challenging the use of “forfeitures” in 401(k) and 403(b) plans to pay plan expenses or offset employer contributions — a practice that has been permitted under Internal Revenue Code and Treasury Regulations for more than half a century and that predates enactment of the Employee Retirement Income Security Act (ERISA). The statement below can be attributed to Tom Christina, Executive Director of the ERIC Legal Center.
“The Plaintiffs’ bar cannot get what it wants from Congress, and it cannot get what it wants from the executive agencies, so it has invited the judicial branch to rewrite a half century of settled law relating to forfeitures. If the plaintiffs are successful, employers will face a new and uncertain landscape where forfeitures can be twisted and stretched to fit any fanciful legal claim. The outcome will be more money spent on legal fees and less money invested in the voluntary retirement plans employees turn to for financial security. The proper role of the judicial branch is not to make a new hit out of every riff the Plaintiffs’ bar invents. The Ninth Circuit Court of Appeals has an opportunity to act swiftly and close the book on these outrageous actions.”
Read the full brief here.