Retirement & Benefits

This class-action suit is one of 50 filed in the past two years by employees challenging how employers use the “forfeited funds” from departing employees who leave before they are vested in the retirement plan.

In 2022, the U.S. Department of Labor warned fiduciaries to “exercise extreme care” before adding a cryptocurrency option to their plans. Today the agency has rescinded that guidance.

The health insurer is facing a second 401(k) suit this year, alleging forfeited funds from departing employees were improperly used, after settling another 401(k) lawsuit in December for a record $69 million.

Following the sudden departure of its CEO, the health insurer is now facing an employee lawsuit that alleges UnitedHealth reduced employer contributions to the 401(k) plan by more than $19 million by using forfeited funds from departing employees, an ERISA violation.

The health insurer is accused of using forfeited funds from departing employees to reduce employer contributions to the retirement plan instead of using the funds to reduce administrative fees.

Representing 16,000 employees, a former participant in the retirement plan filed a class-action lawsuit, alleging the plan’s target-date funds from American Century Investments should have been replaced.

The ongoing battle over the use of ESG factors when making investment decisions for retirement plans continues.

Last week, 26,000 bank employees and retirees reached a settlement with Pentegra over prohibited transactions in their class-action lawsuit, just nine days after a rare jury trial awarded them $38,760,232 over excessive fees.