ANCHORAGE, ALASKA – Mercer has agreed to pay a $500 million settlement with the Alaska Retirement Management Board (ARMB) on its contract and professional malpractice lawsuit. The lawsuit was based on claims of professional malpractice by Mercer, a division of MMC, with the ARMB claiming Mercer knowingly provided bad advice, costing the state billions of dollars over a period of 12 years between 1992 and 2004. Although the ARMB manages seven separate public pension funds in Alaska, the case relates specifically to advice provided for the Alaska Public Employees Retirement System and the State of Alaska Teachers Retirement System, with the two funds originally seeking $2.8 billion in damages. Mercer has agreed to pay but has denied liability. In a statement it said a settlement was “in the best interests of the company and its stakeholders”. In particular, it notes the uncertainty of a jury trial in an area of Alaska with a high concentration of plan participants. The case, which has now been dismissed, had been due to go to trial in Juneau, Alaska, in July. Mercer has stated that $100 million of the settlement will be covered by insurance....
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