BCBS Plan Could Repay Sponsor for Allianz Losses Under Proposal

A Blue Cross Blue Shield Association pension plan could repay its plan sponsor using damages or the settlement from a still ongoing mismanagement suit against Allianz SE and Aon PLC affiliates, according to a proposed US Labor Department exemption.

The association made $82.5 million in restorative payments to the plan after Allianz allegedly mismanaged the plan’s money at the start of the Covid-19 pandemic, resulting in a $2 billion loss.

The proposed exemption would allow the plan to pay the association back if it prevails in court against Allianz and Aon, which acted as the plan’s investment adviser, according ...