Honeywell Hit By Latest Lawsuit Over 401(k) Forfeiture Handling

A former Honeywell International Inc. employee brought a proposed class action on Tuesday against the aerospace technology and manufacturing company for allegedly mishandling unvested 401(k) contributions that a worker may forfeit when exiting the company.

Plaintiff and proposed class representative Luciano Barragan said in a complaint that the Employee Retirement Income Security Act requires Honeywell to use any unvested, forfeited contributions to cover the plan’s expenses, but that the company had instead used the money to reduce the company’s own contributions to the plan. Honeywell employees who participate in the company’s 401(k) plan are immediately vested in their own contributions ...