December 20, 2001 (PLANSPONSOR.com) - Russell/Mellon
Analytical Services purchased UK-based Combined Actuarial
Performance Services, Ltd. (CAPS), an investment services
organization that will be combined with Russell/Mellon's
European operations.
The new UK organization will be called Russell/Mellon
CAPS. Fred Settelmeyer, formerly the Managing Director of
Russell/Mellon Europe, will head up the new entity.
Prior to its purchase by Russell/Mellon, CAPS was
jointly owned by three of European actuarial consultancies,
Bacon & Woodrow, Watson Wyatt and William M Mercer. The
three firms will have a continuing relationship with
Russell/Mellon CAPS in respect of mutual clients.
The new organization combines CAPS’ performance
measurement services and institutional client base with
Russell/Mellon’s systems, products, methodologies, data
warehouses, and client services.
The combined entity will have a client base of more than
1,200 pension fund clients with assets totaling over $700
billion in Europe.
November 8, 2002 (PLANSPONSOR.com) - A federal
appeals court has reinstated an age discrimination suit by a
health care audit consultant, ruling that potentially
discriminatory remarks by a supervisor with hiring and firing
authority should not be discounted.
The US 3
rd
Circuit Court of Appeals sent plaintiff Stephen Fakete’s
suit back to a District Court jury to decide whether Aetna
US Healthcare fired Fakete because of his age, according to
the Legal Intelligencer. The appeals court said Fakete had
evidence that his supervisor told him the employer was
“looking for younger, single people.”
“Viewed favorably to Fakete, the
statement shows that (Supervisor Thomas) Larkin preferred
‘younger’ employees and planned to implement his preference
by getting rid of Fakete,” Circuit Judge Thomas
Ambro wrote, according to The Legal Intelligencer.
“Larkin made his statement in direct response to a question
from Fakete about how he fit into Larkin’s plans. In this
context, a reasonable jury could find that Larkin’s
statement was a clear, direct warning to Fakete that he was
too old to work for Larkin, and that he would be fired soon
if he did not leave Aetna on his own initiative,”
The ruling reverses a May 2001
decision by US District Judge John Padova of the Eastern
District of Pennsylvania that rejected Fakete’s
claims
Plaintiff Was the Oldest Audit Consultant
According to court papers, Fakete was hired by US
Healthcare in April 1992 as an audit consultant. In
1996, USHC merged with Aetna to form Aetna U.S.
Healthcare.
At the time of the merger,
Fakete was 54 years old and the oldest audit consultant
at USHC. The merger agreement prevented Aetna from
terminating any USHC employees for at least two years
following the merger, absent approval from a USHC
executive.
That agreement expired in July
1998, when Fakete was 56 years old and eligible to
retire on a substantial pension within three years. At
the same time, Aetna reorganized its audit department,
and Larkin became Fakete’s supervisor.
Fakete claims that when he asked
Larkin about his future with the company, Larkin
responded that “the new management” — which included
Larkin — wouldn’t be favorable to Fakete because they
were “looking for younger single people that will work
unlimited hours,” and that Fakete “wouldn’t be happy
there in the future.”
Within a few months, Fakete
claims, Larkin issued him a written warning alleging
unexplained absences from the workplace, and threatened
to place Fakete on probation if he did not explain
future absences.
In December 1998, three months
before Fakete’s pension would have vested, the suit
alleged that Larkin fired him on charges of violating
the terms of the warning, falsifying travel expense
reports, and not reimbursing Aetna for personal phone
calls charged to his company credit card.