Aon reaches $15 million settlement with Pennsylvania teachers

A settlement has been reached in a class-action lawsuit that accused a division of Aon Plc of making calculation errors and providing flawed investment guidance to Pennsylvania public pension funds. The lawsuit alleged that Aon Hewitt Investment Consulting failed in its fiduciary duty when working with the State Employees’ Retirement System and the Public School Employees’ Retirement System. The terms of the settlement, which will amount to $12.5 million, are still subject to approval by the court.

The lawsuit, filed in 2017, claimed that Aon Hewitt made errors in calculating the funds’ asset management fees, leading to significant losses in investments. Additionally, the plaintiffs argued that the company failed to act in the best interests of the pension funds by providing improper investment advice. The settlement will cover all claims from 2010 to the present day, including allegations related to investment recommendations made during this period.

The plaintiffs in the lawsuit expressed satisfaction with the settlement, highlighting the importance of holding financial advisors accountable for their actions. They emphasized the need to ensure that pension funds are managed responsibly and that fiduciaries act in the best interests of their clients. The settlement serves as a reminder to all financial advisors about the importance of fulfilling their duties and providing accurate information to clients.

Aon Hewitt has not admitted to any wrongdoing as part of the settlement. However, the company agreed to pay $12.5 million to resolve the lawsuit and bring an end to the legal proceedings. The settlement will provide compensation to the Pennsylvania pension funds for any losses incurred as a result of the alleged errors and faulty investment advice provided by Aon Hewitt.

The settlement represents a significant step towards resolving the legal issues surrounding the case. It demonstrates the willingness of all parties involved to reach a mutually satisfactory agreement and move forward. The approval of the court is still pending, but once finalized, the settlement will bring closure to the class-action lawsuit that has been ongoing for several years.

Overall, the settlement in the class-action lawsuit against Aon Hewitt Investment Consulting highlights the importance of accountability and responsibility in managing pension funds. It serves as a reminder to all financial advisors to act in the best interests of their clients and provide accurate and reliable investment advice. The resolution of this case will hopefully bring justice to the Pennsylvania public pension funds and ensure that similar incidents are prevented in the future.