Aon, Alight Win Judgment in Hospital PRT Lawsuit
A federal judge found Aon Hewitt acted prudently, after hearing testimony about the firm’s investment actions and contractual obligations.
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A federal judge has ordered a judgment in favor of Aon Hewitt Investment Consulting and Alight Solutions in a case alleging breaches of Employee Retirement Income Security Act (ERISA) fiduciary duties related to pension risk transfer (PRT) transactions.
Following a bench trial, Judge James S. Moody Jr. of the U.S. District Court for the Middle District of Florida said in his order that the defendants “acted prudently and reasonably in administrating, investing and terminating the pension plan.” In addition, he said Alight Solutions is “entitled to judgment in its favor as a matter of law because the portion of the business it purchased from Hewitt Associates LLC did not perform any portion of the contract with plaintiffs and did not inherit any associated liability.”
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Former Aon Hewitt authorised representative Andrew Hills has been banned by the Australian Securities and Investments Commission (ASIC) for four years for allowing misleading and inaccurate letters about MySuper opt-outs to be issued to some Aon Master Trust members.
The banning followed surveillance between 2014 and 2017 by the corporate regulator which contravened section 1041H of the
Corporations Act.
ASIC found that:
The letters contained incorrect information, like the past performance of Aon MySuper and the timing of when members would transition to MySuper;
The letters omitted material information about the intended benefits of MySuper, such as lower fees and insurance premiums;
Claims Against Astellas, Aon Move Forward in Untested CITs Lawsuit
A judge found that allegations were sufficient to deny most motions to dismiss filed by the plan sponsor and the investment manager.
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A federal judge has moved forward claims in an Employee Retirement Income Security Act (ERISA) lawsuit against pharmaceutical product manufacturing company Astellas US LLC, its board of directors and its retirement plan administrative committee, as well as the plan’s discretionary investment manager, Aon Hewitt Investment Consulting.
The plaintiffs allege that instead of acting in the exclusive best interest of participants, Aon Hewitt, now known as Aon Investments USA, acted in its own interest by causing the plan to invest in Aon’s proprietary collective investment trusts (CITs) for Aon’s benefit. The Astellas defendants are also accused of failing to use the plan’s bargaining power to negotiate reasonable fees for investment management services.
Investors are increasingly committing to private debt funds on the advice of top investment consultants, according to Private Credit Fund Intelligence’s first-quarter report on consultant activity.
Nine out of the ten top consulting firms, measured by total client commitments, advised on at least one private debt mandate in the past 12 months, resulting in private debt comprising 12 percent of all consultant-led allocations, according to the report, which was released on Tuesday. Private debt commitments advised by the top five private debt consultants Cambridge Associates, Meketa Investment Group, Versus Investments, NEPC, and Callan had increased in volume by 44 percent over the same period, PCFI said.
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