Latest 401(k) Forfeiture Lawsuit Filed Against UBS

The investment bank was accused of mismanaging forfeited funds in its 401(k) plan by using them toward reducing employer contributions.

UBS has joined the list of companies facing lawsuits over their management of forfeited funds in their 401(k) plans.

In Czakoczi v. UBS AG et al, filed Thursday in U.S. District Court for the District of New Jersey, the investment bank is accused of acting in its own self-interest by using forfeitures to reduce its employer contributions, as opposed to allocating forfeited funds toward paying plan expenses.

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This same argument has been made in the slew of other Employee Retirement Income Security Act lawsuits against plan sponsors. Most recently, Cigna Group was sued for its treatment of forfeitures, while software company Intuit Inc. reached a settlement after its motion to dismiss the case was denied in 2024.

Carol Czakoczi, a participant in the UBS 401(k) Plan, claimed in the complaint that UBS’s use of the forfeitures to reduce employer contributions is “not in the best interest of participants, as participants then pay all of the plan’s expenses out of their individual accounts, leaving participants with less assets for distribution or investment.”

According to the lawsuit, the plan’s documents state that “forfeitures shall be applied to either reduce succeeding company contributions by the employers, or pay plan expenses, as determined by the plan Administrator in its sole discretion.”

However, Czakoczi’s complaint argues that because UBS is not at risk of satisfying its contribution obligations, it should have allocated forfeited funds to pay plan expenses.

The lawsuit further accuses UBS of failing to undertake any reasoned and impartial decisionmaking process to determine which use of the plan’s forfeited funds was in the best interest of participants.

The plaintiff, represented by Dicello Levitt LLP, asks the court to declare that UBS fiduciaries breached their ERISA duties and to require UBS to make good “plan losses” resulting from such alleged breaches.

According to its most recent Form 5500, the UBS 401(k) plan has more than $9 billion in assets and 32,447 participants.

UBS did not immediately respond to a request for comment.

Several forfeiture cases have been dismissed in the last year, including one earlier this month that was filed against the Kaiser Foundation Health Plan. In that case, the district court judge found that the plaintiff’s claims were insufficient, adding that ERISA does not impose a broader duty to maximize participant balances beyond what the plan terms require.

Retirement Industry People Moves – 5/30/2025

IRI announces executive committee changes; Simpson Thacher adds a partner to its executive compensation team; Russell Investments announces new investment division appointments; and more.

IRI Announces Changes to Executive Committee and New Board Members

The Insured Retirement Institute announced three representatives to its board of directors: Dominic Blue, head of third-party distribution and new markets at MassMutual; Hilary Corman, managing director of U.S. and head of enterprise sales and institutional distribution at State Street Global Advisors; and Barbara Dare, vice president of sales strategy and enablement at Pacific Life.

Current board member Marci Green, managing director and head of retail insurance at Goldman Sachs Asset Management, moves to the executive committee.

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“Collectively, these individuals bring several decades of industry experience and are committed to advancing retirement security for all Americans,” said Wayne Chopus, IRI’s president and CEO, in a statement. “Adding Marci to our Executive Committee is a reflection of her leadership from her years on the IRI Board of Directors. Dominic, Hilary, and Barbara join a highly engaged and dedicated group of leaders, and I look forward to their contributions and perspectives on the opportunities and challenges facing our industry.”

Simpson Thacher Bolsters Executive Compensation Team

Jana Hymowitz

Simpson Thacher & Bartlett LLP announced that Jana Hymowitz has joined the firm’s New York office as a partner in the executive compensation and employee benefits practice.

Hymowitz advises companies, boards of directors, executives and investors across a spectrum of transaction-related compensation and benefits matters, with an emphasis on issues arising in mergers and acquisitions, as well as initial public offerings and other capital markets transactions. Hymowitz was previously a partner in Cravath, Swaine & Moore LLP for almost 9 years.

“Jana is a highly respected and experienced executive compensation partner with a strong track record advising clients on sophisticated compensation and benefits matters in M&A and other complex transactions,” said Greg Grogan, head of Simpson Thacher’s executive compensation and employee benefits practice, in a statement. “Her deep knowledge and strategic judgment make her a natural fit for our practice and the clients we serve.”

Russell Investments Announces New Investment Division Appointments

Russell Investments announced new senior leadership appointments in its investment division.

Paul Eitelman

Paul Eitelman has been appointed global chief investment strategist, leading Russell Investments’ global macroeconomic outlook process while continuing to serve clients and consultants. With nearly 20 years in the industry and more than 10 years at Russell Investments, Eitelman most recently served as the chief investment strategist for North America, and his research helped guide the firm’s investment strategies in the region.

Andrew Pease was appointed head of investments for Asia-Pacific. Pease, who most recently served as global chief investment strategist, brings more than 30 years of experience in asset allocation, portfolio strategy and macroeconomic research. Pease will work closely with local and global teams to deliver innovative solutions to clients in the region. He will relocate to Sydney from London in July.

Northern Trust Appoints Chief Investment Strategists

Gary Paulin


Northern Trust Asset Management appointed Gary Paulin as chief investment strategist, international, and Joseph Tanious as chief investment strategist for North America.

Paulin and Tanious will work with Northern Trust’s investment team in equities, fixed income, multi-asset and alternatives to build its economic and markets views. The strategists will also develop joint research to advance the investment team’s views of new instruments and areas of market developments such as thematics, use of public/private assets, digital assets and use of alternative vehicles, such as active exchange-traded funds and model portfolios.

Joseph Tanious

Paulin has spent nine years with Northern Trust, most recently as head of international enterprise client solutions. Tanious joins Northern Trust from Bessemer Trust, where he was most recently a managing director and head of portfolio strategy and construction.

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