Administration April 1, 2006

Marsh Hit with Lagging Contingent-Commission Suit

January 4, 2006 (PLANSPONSOR.com) - Marshall & Ilsley Corp. (M&I), a banking and financial services company, filed suit against Marsh & McLennan Cos. Inc. in federal court in Milwaukee last month on charges that the broker secretly took kickbacks from insurers in the form of contingent commissions while placing the bank's coverage, Business Insurance reports.
Reported by

The bank is charging Marsh with breaches in fiduciary duty, also claiming it was unaware that Marsh collected interest income on M&I premiums held in fiduciary accounts before remitting them to underwriters.

Marsh previously settled bid-rigging charges for $850 million with clients who hired the company for insurance with inception dates from January 1, 2001 – December 31, 2004 (See  MMC Settles ‘Shameful’ Bid-Rigging Case ).   M&I hired Marsh in 1995, according to Business Insurance.

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Clients had until Sept. 20, 2005, to seek compensation from the $850 million fund and waive their right to sue Marsh.   Business Insurance said that about half of the 140,000 eligible clients opted to participate, including more than 90% of Marsh’s largest clients, the broker reported after the deadline passed.

The suit seeks restitution equaling the contingent commissions and interest income Marsh received on M&I’s business, along with punitive damages.

Benefits March 31, 2006

Retirees File Suit to Enforce Free Lifetime Health Benefits

March 31, 2006 (PLANSPONSOR.com) - Retirees of Caterpillar Inc. have filed suit against the company to enforce promised health care benefits under collective bargaining agreements.
Reported by

The complaint charges that Caterpillar’s labor contracts and benefit plans provided retiree’s health care coverage “continued for his or her lifetime at no cost,”according to an announcement from the law firm representing the plaintiffs.In October 2004, Caterpillar began charging retirees monthly premium costs ranging from $134 to $280 per month for health care benefits.

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The lawsuit seeks to stop the premium charges and restore the plaintiffs and similarly situated retirees to the position they would have been if not for Caterpillar’s alleged contractual violations.

The two retirees and wife of a deceased retiree who filed the suit are requesting class-certification to include former Caterpillar retirees and surviving spouses who retired before the adoption of a March 1998 contract.

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