Providence Health Sued Over Retirement Plan’s Forfeiture Usage

Providence Health & Services mismanaged its employees’ retirement plan by failing to use money forfeited by departing workers to lower the plan’s administrative expenses, according to a new lawsuit.

Providence, which operates 51 hospitals across several Western states, violated the terms of its retirement plan by using forfeitures to reduce the contributions it would otherwise have to make to the plan, a Providence employee said in a proposed class action complaint. The health system’s plan requires that any forfeitures be first used to pay the plan’s administrative expenses, and Providence’s decision to put forfeitures toward its own contribution obligation ...