JPMorgan’s 401(k) Forfeiture Usage Draws Would-be Class Lawsuit

JPMorgan Chase & Co. mismanages its employees’ retirement plan by using 401(k) money forfeited by departing workers for its own benefit, a plan participant said in a proposed class action complaint.

The banking giant uses 401(k) forfeitures to reduce the employer contributions it would otherwise have to make to the plan instead of using this money to benefit the plan and its participants, plaintiff Daniel Wright said in a complaint filed Tuesday in the US District Court for the Central District of California. JPMorgan saved itself “millions of dollars in contribution costs” by failing to act in participants’ best interests ...