Crane Co. Is Latest Employer Sued Over 401(k) Forfeiture Usage

Crane Co. mismanages its retirement plan by using the money forfeited by departing workers for its own benefit, a former employee alleged in a proposed class complaint.

Crane used more than $11 million in 401(k) forfeitures to make its required employer contributions to the plan, instead of using that money to reduce the administrative expenses paid by workers, the employee said in a June 20 complaint. This self-interested and disloyal conduct violates plan terms and the Employee Retirement Income Security Act, according to the lawsuit, which seeks to represent a proposed class of more than 9,000 plan participants.

Plaintiff ...