Bad Deal Cost Alaska $2 billion and Puts Permanent Fund at
Risk
FOR IMMEDIATE RELEASE: 09/17/2014
CONTACT: Max Croes — 907-570-2065
ANCHORAGE — On the day Alaskans received good news about their Permanent Fund Dividend check they should remember Dan Sullivan put the Permanent Fund at risk by shortchanging Alaskans out of $2.3 billion as attorney general.
Sullivan cut a bad deal when he negotiated the Mercer settlement that returned only $.20 on the dollar to Alaska for $2.8 billion in damages resulting from fraud committed by an Outside financial firm. Sullivan’s failure to return $2.3 billion to Alaska’s pension systems put the Permanent Fund at risk of being tapped to cover Alaska’s unfunded liability.
“Alaskans know the Permanent Fund should never be used beyond paying Alaskans a dividend. The lawsuit settlement Dan Sullivan is bragging about on TV not only shortchanged Alaskans by delivering $.20 on the dollar, but it recklessly put the Permanent Fund at risk,” said Susanne Fleek-Green, Campaign manager forAlaskans for Begich.
Sullivan recently aired TV ads misrepresenting his failed record as attorney general by proclaiming victoryfor his failure to deliver billions of dollars in damages back to the State of Alaska after mismanagement by a Outside financial firm.
Dan Sullivan testified to the state legislature that Alaska was in line to receive over $2 billion from the lawsuits near certain victory. Yet Sullivan went on to “personally negotiate” an undervalued figure of $400 million while paying out nearly $100 million to the New York City law firm hired for the case.
By comparison, the County of Milwaukee received twice as much as Alaska in a similar settlement, getting back $.45 cents on the dollar. Alaska teachers and state employees have spoken out against Sullivan’s false claims and have demanded he take personal responsibility for the failed settlement.
A recent claim check of Sullivan’s ad by The Alaska Dispatch reads:
“And neither the actuarial errors nor the financial crisis cited by teacher Leslie Moore resulted in a “big hit” to her pension or threatened other teachers’ pensions. In Alaska, public employee pensions, such as those for teachers, are contractual obligations protected under the Alaska Constitution.
“If the retirement trust funds don’t have enough money available to make pension payments, other state assets, such as budget reserves or the Alaska Permanent Fund, may be tapped for that purpose.”
