RTX Sued by Former Workers Over Handling of 401(k) Forfeitures

RTX Corp. was sued by two former employees who say their 401(k) plan is mismanaged because the company uses unvested forfeited contributions for its own benefit.

RTX, formerly known as Raytheon Technologies Corp., consistently opted to use the 401(k) contributions forfeited by departing workers to reduce the money it’s required to contribute to the plan, instead of using them to cover the administrative expenses charged to employees, according to the Aug. 22 lawsuit. This “unlawful” practice saved the company more than $18 million between 2019 and 2023 and violated the Employee Retirement Income Security Act’s directive that retirement plan assets ...