ANCHORAGE, Alaska (Legal Newsline) - Alaska Attorney General Dan Sullivan has announced that the state's retirement managing board settled a lawsuit against its former actuary, Mercer.
The lawsuit alleged claims of malpractice, breach of contract and unfair trade practices in advising the state on management of the Alaska Public Employees' Retirement System.
Under the settlement agreement, Mercer will pay $500 million in exchange for dismissal of the lawsuit with prejudice.
Officials estimate that after court costs and fees for private attorneys hired to represent the State, the public pension system should receive about $403 million, which must be paid within 60 days.
"This is a great result for the ARM Board and most importantly for Alaska state workers and retirees," Sullivan said.
"This is a significant settlement that will benefit the state and our citizens. We have been informed that by a large margin it is the largest such settlement in history for this kind of claim."
Sullivan said the unfunded liabilities were caused by stock market declines, significant increases in health care costs and by Mercer's negligence.