March 8, 2011
Jefferson City, Mo. – Attorney General Chris Koster said today a Court of Appeals, Western District, decision is good news for Missouri’s deferred compensation plan, and, when final, should lead to $18 million, plus interest, being returned to the plan, making it more secure.
Koster said the case involved the changeover in 2006 from Nationwide to ING as managers of the stable income fund within the Missouri State Employees Deferred Compensation program. Nationwide claimed the contract allowed them to withhold $18 million as a market value adjustment. When a lower court agreed, the Attorney General’s Office appealed on behalf of the state. Today the Western District Court of Appeals issued its ruling, which agrees with the Attorney General’s argument that the provision allowing a market value adjustment had been removed from the contract at an earlier time and was no longer in effect at the time of the changeover.
“I am pleased that today’s decision, if upheld, will mean $18 million will be returned to the plan, helping to ensure that our state employees have access to a more secure, higher earning investment product through which they can invest for retirement,” Koster said.
Background information on the lawsuit can be found at: http://www.modeferredcomp.org/en/About-the-Plan/Plan-Updates-Archive/2010/Lawsuit_Update.aspx. Click on “Latest News and Past Updates” to open a PDF.