ANCHORAGE —  A claim check by the Alaska Dispatch News confirmed U.S. Senate candidate Dan Sullivan left billions of dollars on the table when he ‘personally’ settled a pension lawsuit returning only $.20 on the dollar to Alaskans who deserved $2.8 billion.

Sullivan claims to have fought Wall Street on behalf of Alaska’s teachers in his new ad for settling the Mercer case as attorney general. In reality, Sullivan overlooked the needs of hardworking Alaskans and public employees by paying nearly $100 million to an Outside law firm and returning an undervalued figure of $400 million to Alaska in the settlement.

Alaska teachers have spoken out against Sullivan’s misleading ad noting Sullivan’s “loyalties are not with Alaska” and that he had to “re-write history about his role in costing our retirement fund billions of dollars.” The price tag of the settlement also fell short of what other suits delivered. The County of Milwaukee received $.45 on the dollar compared to Alaska’s $.20.

The claim check by the Alaska Dispatch News states:

“As attorney general, Sullivan told legislators that the state’s case was “amazing” and that the discovery of fraud on Mercer’s part greatly strengthened the case. Alaska’s New York law firm was “stunned” by what it found Mercer had done, he said. Sullivan defended his use of the word “fraud” to describe Mercer’s actions. I don’t throw that word around lightly,” he told legislators. In addition to the state’s original claims, punitive and treble damages related to fraud could have driven the claims against Marsh & McLennan higher, legislators were told. But months later, Sullivan signed the settlement agreement for billions less than had been sought.” [Alaska Dispatch News, 9/5/2014]

The Alaska Dispatch also asserts that Sullivan’s mismanagement of the deal and inability to return sufficient resources to the pension fund put the Alaska Permanent Fund at risk, which may have to be tapped as a reserve to make up for the shortfall:

“And neither the actuarial errors nor the financial crisis cited by teacher Leslie Moore resulted in a “big hit” to her pension or threatened other teachers’ pensions. In Alaska, public employee pensions, such as those for teachers, are contractual obligations protected under the Alaska Constitution.

“If the retirement trust funds don’t have enough money available to make pension payments, other state assets, such as budget reserves or the Alaska Permanent Fund, may be tapped for that purpose.” [Alaska Dispatch News, 9/5/2014]

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