Court Watch - Monday, July 26, 2010 9:39 - 0 Comments

Alaska Settles Pension Lawsuit For $500 Million

Alaska’s Attorney General, Dan Sullivan, announced last month that Alaska has settled a breach of contract and professional malpractice lawsuit against its former actuary for $500 million. The settlement between the Alaska Retirement Management Board and Mercer Inc. may be the largest of its kind. This appears to be a great result for state workers and retirees in Alaska. Attorney General Sullivan is to be commended for pursuing this matter in the courts.

Alaska sued Mercer in 2007 alleging that mistakes by the company had contributed to an $8.4 billion state pension deficit. Mercer had been the actuary for the state’s Public Employees’ Retirement System and Teachers’ Retirement System pension plans. Of the total amount to be paid, $100 million will come from liability insurance. Mercer will pay the rest.

Source: Montgomery Advertiser