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Alternative Market Briefing

SEC approves $1.57m Fair Fund Distribution to Pennsylvania Teachers' Pension after Aon miscalculation scandal

Thursday, April 09, 2026

Matthias Knab, Opalesque:

The SEC has approved a plan to return the full Fair Fund to PSERS - the sole harmed client - after extending the relevant period to capture advisory fees paid through December 2022, closing a chapter in one of the most consequential pension data integrity failures in recent U.S. public finance history.

The U.S. Securities and Exchange Commission has approved the final Plan of Distribution in the matter of Aon Investments USA Inc. and its former partner Claire P. Shaughnessy, directing a combined Fair Fund of approximately $1.57 million to the Pennsylvania Public School Employees' Retirement System (PSERS) - the sole client harmed by the misconduct. The order, dated April 7, 2026, closes the enforcement chapter of a scandal that triggered federal investigations, forced more than $80 million in additional pension contributions from public school employees, and ultimately led Aon to pay a separate $7 million civil settlement to PSERS itself.

Background: A 37 Basis-Point Discrepancy With Large Consequences

At the center of the affair was a narrow but consequential figure: a 37 basis-point discrepancy in PSERS's reported investment returns for 2015. Aon had served as PSERS's investment adviser since 2013, and was responsible for calculating the fund's returns for "risk share" - a provision in Pennsylvania law requiring public school employees hired after 2011 to contribute more to their retirement......................

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