Meijer Sued by 401(k) Plan Participants Over Forfeiture Usage

Midwestern retailer Meijer Inc. is the latest employer to be hit with a proposed class action challenging how it handles forfeitures in its employees’ 401(k) plans.

The lawsuit challenges the company’s decision to use the unvested 401(k) contributions forfeited by departing workers to reduce the amount it’s required to contribute to the plans rather than to lower the administrative expenses paid by workers. By choosing to use this money in a way that benefited the company instead of workers, Meijer violated the Employee Retirement Income Security Act, six plan participants said in the complaint filed Wednesday in the US District ...