AT&T 401(k) Plan Investor Files Suit Over Forfeiture Handling

AT&T Services Inc. is the latest employer to be hit with a proposed class action challenging how it handles 401(k) money forfeited by departing workers.

AT&T’s retirement plan gives the telecommunications company discretion to use 401(k) forfeitures to pay for administrative expenses, a plan participant said in a proposed class action complaint filed Monday in the US District Court for the Central District of California. But the company instead uses these amounts for its own benefit by offsetting the future contributions it’s required to make to the plan, the participant alleged.

• The lawsuit is part of a recent series of ...