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DOL brief argues no automatic ban on using forfeited plan contributions to reduce future employer contributions

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Confirm the amicus brief contains the assertion that ERISA does not impose a per se rule barring fiduciaries from allocating forfeited employer contributions to reduce future employer contributions.

Source summary
The U.S. Department of Labor filed an amicus brief with the Third Circuit urging it to affirm a lower court’s dismissal of fiduciary breach claims in Barragan v. Honeywell Int’l Inc. The DOL argued the district court correctly found the plan sponsor did not breach duties because the plan allowed fiduciary discretion and the plaintiff made only a bare allegation about forfeitures. The brief asserts ERISA’s protections focus on honoring promised participant benefits and that there is no per se rule preventing fiduciaries from using forfeited employer contributions to reduce future employer contributions.
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Latest fact check

The Department of Labor’s January 30, 2026 press release describing its amicus brief in Barragan v. Honeywell states that the brief "confirms that there is no per se rule barring plan fiduciaries from deciding to allocate forfeited employer contributions to reduce future employer contributions rather than using those funds to offset administrative costs." The release links to the Department’s amicus brief, which explains the Secretary’s view that using forfeitures in that manner would not necessarily violate ERISA and that courts should not impose a per se prohibition. Verdict: True — the Department of Labor’s official press release and the amicus brief it filed explicitly make the claimed argument.

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Timeline

  1. Update · Jan 31, 2026, 05:33 AMTrue
    The Department of Labor’s January 30, 2026 press release describing its amicus brief in Barragan v. Honeywell states that the brief "confirms that there is no per se rule barring plan fiduciaries from deciding to allocate forfeited employer contributions to reduce future employer contributions rather than using those funds to offset administrative costs." The release links to the Department’s amicus brief, which explains the Secretary’s view that using forfeitures in that manner would not necessarily violate ERISA and that courts should not impose a per se prohibition. Verdict: True — the Department of Labor’s official press release and the amicus brief it filed explicitly make the claimed argument.
  2. Original article · Jan 30, 2026
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