Albertsons Is Latest Employer Sued Over 401(k) Forfeiture Usage

Albertsons Cos. Inc. was sued Monday by a former employee who says the California-based grocer wrongly uses 401(k) money forfeited by departing workers for its own benefit.

Albertsons used more than $28 million in 401(k) forfeitures to reduce the amount it would otherwise have to contribute to the plan between 2018 and 2023, the employee said in a proposed class action complaint filed in the US District Court for the Northern District of California. The company failed to investigate whether plan participants would be better served by using this money to offset the administrative expenses they pay in connection with ...