Retirement & Benefits

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.

Former employees sued the grocery chain for allegedly failing to rein in recordkeeping costs from Fidelity, even though services were “routine.”