Cigna Accused of Using 401(k) Forfeitures for Own Benefit (1)

The Cigna Group is the latest multinational accused of violating its duties to its retirement plan participants by using forfeited funds to reduce employer contributions to its plan, a new proposed class action says.

Cigna’s 401(k) plan also allegedly invested in contracts that provided “significantly lower rates of return” than comparable funds the healthcare insurer could have made available to retirement plan participants, according to the complaint filed Wednesday in the US District Court for the Eastern District of Pennsylvania.

Cigna allegedly breached the duties it owed to plan participants by failing to defray “reasonable” plan administration expenses, say the ...