Mercer (US), a subsidiary of Marsh & McLennan, has resolved litigation brought by the Alaska Retirement Management Board (ARMB) on behalf of two Alaska benefit plans, relating to work in the period 1992 to 2004.
According to Mercer, this settlement, in which the company has denied liability, had resolved all claims against it by the ARMB and the State of Alaska related to this matter.
Under the terms of the settlement agreement, the company has agreed to pay $500m, of which $100m will be covered by the insurance.
In addition, the company said that this settlement was in best interests of it and its stakeholders for several reasons, including: uncertainty of outcome of a jury trial in Juneau, with its concentration of plan participants; complex technical nature of claims; and the fact that plaintiffs were seeking at least $2.8bn in damages.
Mercer is a provider of consulting, outsourcing and investment services. It works with clients to solve benefit and human capital issues, designing and helping manage health, retirement and other benefits.