Pacific Dental Is Latest Employer Sued Over 401(k) Forfeitures

Pacific Dental Services LLC is facing a lawsuit by two former employees who say the dental health-care company mismanages its retirement plan by using forfeited money for its own benefit.

Pacific used the 401(k) money forfeited by departing employees to reduce the money it was otherwise required to contribute to the plan, instead of putting that money toward the administrative expenses paid by workers, the employees said in a proposed class action complaint. This violates plan terms and constitutes a breach of duty under the Employee Retirement Income Security Act, according to the complaint.

The lawsuit, filed Wednesday in ...