Blue Cross Pulls Pension Exemption After Allianz, Aon Settlement

Federal regulators have withdrawn a proposed exemption that would have allowed a Blue Cross Blue Shield Association pension plan to repay its plan sponsor with damages or settlement money from a mismanagement suit against Allianz SE and Aon PLC affiliates.

The Employee Benefits Security Administration issued a notice Tuesday saying Blue Cross Blue Shield had “decided not to pursue the proposed exemptions due to changed circumstances.” EBSA did not provide further elaboration.

The BCBS association’s National Employee Benefits Committee settled several lawsuits against Allianz and Aon last month. BCBS repaid its retirement plan committee $82.5 million after Allianz allegedly mismanaged ...