Pensions
Pennsylvania PSERS Drops Aon as Consultant
Aon admitted fault for the 2020 mistakes that led to the resignations of pension fund leaders, and the fund has moved on to a new consultant, Verus Investments.
The $72.8 billion pension fund also launched a new strategic plan and hired an external derivatives manager.
The $72 billion pension fund aims to reduce risk by cutting back its allocations to private markets and absolute return.
The pension fund accuses Aon of breach of contract, breach of fiduciary duty and negligence.
A 2020 accounting error had prompted the investigation that lasted for more than a year.
The regulator is also seeking information on a financial misstatement from 2020 that triggered a contribution increase.
State’s largest pension fund has reportedly spent over $1 million for reporting error damage control.
‘Misstatement’ in 2020 financial reporting could lead to increase in teachers’ pension contributions.