Business Groups Backed AT&T in 401(k) Appeal

The ERISA Industry Committee filed an amicus brief supporting the dismissal of a lawsuit over plan forfeitures.

Updated on Sept. 28, 2026 in Retirement Planning

Isometric editorial illustration featuring interlocking geometric stone columns, representing structural institutional support. — Business groups, including the U.S. Chamber of Commerce and the ERISA Industry Committee, have intervened in a legal battle supporting AT&T's use of 401(k) plan forfeitures. AI Illustration. Upload story photo >

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Industry organizations have intervened in an ongoing legal battle regarding the use of retirement plan forfeitures by AT&T. The amicus brief supports the company's position that it properly followed the terms of its retirement savings plan.

Why it matters

The case carries significant implications for retirement plan administration, as it centers on whether companies can use forfeited employer contributions to offset future matching obligations. The outcome could set a legal precedent for how major corporations manage plan assets.

The AT&T Retirement Savings Plan held $43.1 billion in assets and served 203,226 participants at the end of 2024. The volume of plan forfeiture complaints rose to 48 in 2025, compared to 29 complaints filed during the previous year.

The players

AT&T Services Inc.

This is a major American multinational telecommunications company that manages a large employee retirement savings plan.

The ERISA Industry Committee

This organization represents the employee benefits interests of large employers and advocates for policies related to retirement and health plans.

Otis Wright II

He is a U.S. District Judge serving in the Central District of California who presided over the initial dismissal of this lawsuit.

U.S. Chamber of Commerce

This is the largest business federation in the United States, representing the interests of millions of businesses and various industry groups.

American Benefits Council

This association advocates for employer-sponsored benefit programs and provides policy expertise on retirement and healthcare issues.

The details

In the case Luis Hernandez v. AT&T Services Inc. et al., plaintiffs challenged how the company utilized forfeited employer contributions. Business groups, including the ERISA Industry Committee, the U.S. Chamber of Commerce, and the American Benefits Council, argue that federal law permits using these forfeitures to reduce future employer matching contributions.

Retirement plan data reflects totals from the end of 2024.
Plaintiffs filed 48 forfeiture complaints throughout 2025.
U.S. District Judge Otis Wright II dismissed the complaint in August 2026.
The ERISA Industry Committee filed an amicus brief in September 2026.

Market Dynamics

This litigation tests the interpretation of employer responsibilities and forfeiture usage as defined under the Employee Retirement Income Security Act of 1974. The dispute highlights the ongoing legal tension between corporate plan sponsors and plan participants regarding the management of retirement savings.

The 9th Circuit Court of Appeals decision could impact how employers structure retirement matching programs for millions of workers nationwide. If the dismissal is upheld, it may clarify the legal leeway companies have in using forfeitures to balance their plan-related expenses.

The takeaway

This case highlights the growing complexity of 401(k) management and the legal scrutiny applied to employer-sponsored plans. Readers should review their own retirement plan documents to understand the specific rules regarding forfeiture allocations.