(The Center Square) – The Pennsylvania Public School Employees’ Retirement System filed a civil complaint on Monday against Aon Investments USA, saying the investment company cost it millions of dollars in damages.
The complaint, filed in the Philadelphia Court of Common Pleas, Commerce Division, says Aon Investments USA still has “not fully come clean” over mistakes it made in 2020.
“Through this litigation, PSERS seeks to hold Aon accountable for the errors it made related to PSERS’ 2020 risk share analysis and recover damages to compensate PSERS for the significant and ongoing harm Aon has caused,” the Pennsylvania pension system said in an email to The Center Square.
In the complaint, PSERS said that its damages are ongoing and have increased due to the investment company’s lack of cooperation.
In the court filing, PSERS says, “Aon has refused to adequately address or take full responsibility for its errors. It has failed to fully cooperate with multiple investigations into those errors and in a separate litigation arising from those errors. For these reasons, Plaintiffs’ damages have increased, are ongoing, and continue to mount.”
PSERS said in the complaint that Aon’s mistakes caused it to approve incorrect member contribution rates from 2021 through 2023.
The complaint states that the pension system repeatedly asked Aon whether its analysis was accurate and was assured it was by the investment company.
“Aon either completely failed to investigate the issues PSERS had raised or was so negligent in its investigation, that each time Aon claimed to have checked and rechecked its work, Aon, again and again, failed to catch its own errors,” the complaint states.
PSERS has contracted with Aon since 2013 for various investment consulting services. The current contract ends in September 2024.
Aon Investments USA did not immediately respond to an email seeking comment.
