“… fundamental errors in methodology and even in basic calculations”
The state of Alaska said on Thursday it was suing Mercer for more than $1.8bn, accusing the unit of Marsh & McLennan of making errors in calculating pension plans’ expected liabilities.
The lawsuit filed on Thursday in state superior court in Juneau accuses Mercer of mistaken assumptions and methods about future healthcare costs and basic mathematical and technical errors.
“Fully aware of the billions of dollars at stake, Mercer nevertheless made fundamental errors in methodology and even in basic calculations, and failed to assign competent, experienced personnel to work for the plans,” the lawsuit charges.
“Because of this misconduct, Mercer miscalculated – by over $1.8bn – the contributions necessary to fund the (pension) plans.”
Ooh, that smarts.