HP Joins List of Employers Sued Over 401(k) Forfeiture Usage

HP Inc. is the latest employer to be hit with a class complaint challenging how it handles the 401(k) plan money forfeited by workers who leave their jobs after short periods.

Plaintiff Paul Hutchins says HP’s retirement plan gives the California-based computer hardware maker discretion over whether to put forfeited money toward the contributions it’s required to make to the plan, or use that money to pay expenses that would otherwise be charged to plan participants. By consistently choosing the first option, HP puts its own financial interests ahead of the retirement savings of its workers, Hutchins says.

This choice ...