Providence Health 401(k) Forfeiture Deal Valued at $42 Million

Providence Health & Services signed a class settlement valued at more than $42 million, resolving claims it mismanaged its employees’ retirement plan by failing to use money forfeited by departing workers to reduce administrative expenses.

The proposed deal, which the parties say will provide about 202,000 class members with benefits of nearly $182 each, requires Providence to move more than $21 million currently held in its 401(k) plan forfeiture account into the individual accounts of plan participants.

Providence must also pay the plan’s recordkeeping and administrative expenses for 2026, 2027, and 2028—a move the parties value at more than $15 ...