Humana’s Handling of 401(k) Plan Forfeitures Drives New Lawsuit

A former Humana Inc. employee filed a proposed class action challenging how the health insurance company handles the retirement plan contributions forfeited by departing workers.

Humana is accused of wrongly putting unvested 401(k) forfeitures toward the amounts it’s required to contribute to the plan, instead of using this money to reduce the administrative expenses charged to workers’ accounts. The company also wrongly allowed hundreds of thousands of dollars worth of forfeitures to pile up in the plan without being put toward a more productive use, according to a complaint filed Wednesday in the US District Court for the Western District ...