Pennsylvania public school employees who paid increased retirement contributions between July 2021 and June 2024 are now receiving settlement checks as part of the PSERS Shared Risk Class Action Settlement. The combined $15,250,000 settlement with two investment consulting firms — Portfolio Advisors ($11,250,000) and Hamilton Lane ($4,000,000) — is being distributed automatically to eligible members in PSERS Membership Classes T-E, T-F, T-G, and T-H. No claim form is required. If you belong to one of those membership classes and paid higher contributions during the affected period, you should watch your mail for a check from “PSERS SHARED RISK QSF.” The settlement stems from a consequential error in calculating PSERS’s 9-year investment return rate.
In December 2020, Aon Investments USA reported the rate as 6.38% — just barely above the 6.36% threshold that would have triggered shared-risk contribution increases. The number turned out to be wrong. The corrected rate was 6.34%, which crossed that threshold and forced newer employees to pay a combined $80 million or more in extra contributions over three years.
Table of Contents
- What Is the PSERS Shared Risk Class Action Settlement and Who Does It Affect?
- How the Investment Return Error Forced $80 Million in Extra Contributions
- The SEC Action and Board Settlement with Aon
- What Settlement Checks Look Like and What Members Should Do
- Ongoing Litigation Against Aon and Aksia — What Could Still Be Coming
- Key Dates and Court Milestones in the PSERS Settlement
- What This Case Means for Pension Fund Oversight Going Forward
- Frequently Asked Questions
What Is the PSERS Shared Risk Class Action Settlement and Who Does It Affect?
The PSERS Shared Risk class action is a lawsuit filed by individual members of the Public school Employees’ Retirement System against four outside investment consultants: Aon Investments USA, Inc., Portfolio Advisors LLC, Hamilton Lane Advisors, L.L.C., and Aksia LLC. The lawsuit alleges that each firm violated fiduciary and contractual duties owed to PSERS plan participants by failing to properly review, vet, recommend, and monitor investments. The affected class includes any PSERS member in Membership Classes T-E, T-F, T-G, or T-H who paid increased mandatory retirement contributions at any time between July 1, 2021, and June 30, 2024. Those membership classes cover public school employees hired since 2011.
An important distinction: PSERS itself — the retirement system board — is not a party to this class action. The lawsuit was brought by individual members on their own behalf. PSERS separately pursued its own legal action against Aon, which resulted in a different $7 million settlement finalized in August 2024. So when you see references to the “member lawsuit” versus the “board lawsuit,” those are two different cases with different settlement funds. The class action settlement checks you may be receiving now come from the member lawsuit, not the board’s separate case.
How the Investment Return Error Forced $80 Million in Extra Contributions
The shared-risk provision in Pennsylvania’s pension code is designed to split investment risk between the retirement system and its members. When PSERS’s actual investment returns fall below a certain threshold, employees in the newer membership classes must pay higher contribution rates. The critical number in this case was the 9-year average return rate. Aon initially reported it at 6.38% — two basis points above the 6.36% trigger. At that figure, members would have been spared the increase.
But the calculation contained errors, and the corrected rate came in at 6.34%, which was below the threshold. That seemingly small difference — four hundredths of a percentage point — had enormous financial consequences. Starting July 1, 2021, members in Classes T-E through T-H saw their mandatory contribution rates increase, and those higher rates remained in effect through June 30, 2024. Collectively, affected employees paid more than $80 million in extra contributions they would not have owed if the return rate had been reported correctly from the start. However, it is worth noting that not all of that $80 million will be recovered through these settlements. The $15.25 million from Portfolio Advisors and Hamilton Lane represents a fraction of the total overpayment, though additional recoveries may come if the remaining litigation against Aon and Aksia produces results.
The SEC Action and Board Settlement with Aon
Beyond the class action, Aon faced regulatory scrutiny from the Securities and Exchange Commission. In January 2024, the SEC charged Aon Investments with violating Section 206(2) of the Investment Advisers Act. According to the SEC, a former Aon partner misrepresented to PSERS that a data discrepancy in the return calculation was not due to errors — when she did not actually know the reason for the discrepancy. Aon consented to a civil penalty of $1 million plus $542,187 in disgorgement and prejudgment interest.
Separately, the PSERS board itself sued Aon and reached a $7 million settlement, which was finalized on August 16, 2024. That money went to the retirement system, not directly to individual members. Between the SEC penalties and the board settlement, Aon has paid roughly $8.5 million in connection with the return-rate error — but none of that money flows through the class action settlement being discussed here. The class action against Aon (and Aksia) remains ongoing, meaning members could eventually receive additional distributions depending on how those cases resolve.
What Settlement Checks Look Like and What Members Should Do
As of February 27, 2026, PSERS posted an updated notice confirming that eligible members are now receiving settlement checks. The checks come from an entity labeled “PSERS SHARED RISK QSF” — the Qualified Settlement Fund established to distribute the Portfolio Advisors and Hamilton Lane settlement money. Members do not need to file a claim form.
Distribution is automatic based on records of who paid increased contributions during the affected period. If you are an eligible member and have not received a check, or if you have questions about your eligibility or the amount, the settlement administratorsettlement administrator[contact via the official settlement website] or through the official settlement website at [pserssharedriskclassaction.com](https://pserssharedriskclassaction.com/). One practical consideration: because the $15.25 million is being divided among all affected members — potentially tens of thousands of employees — individual check amounts will vary based on how much each person overpaid. Members who contributed at the higher rate for the full three-year period will receive proportionally more than those who were only affected for part of that window.
Ongoing Litigation Against Aon and Aksia — What Could Still Be Coming
The settlements with Portfolio Advisors and Hamilton Lane are final, but the class action against the remaining two defendants — Aon Investments USA and Aksia LLC — is still active. This matters because Aon was the firm directly responsible for the erroneous return-rate calculation, which could make it the most significant defendant in terms of potential liability. No settlement with Aon or Aksia has been announced in the member lawsuit as of this writing.
Members should be aware that ongoing litigation means additional settlement funds could eventually become available, but there is no guarantee of a timeline or outcome. Cases against remaining defendants could settle, go to trial, or take years to resolve. In the meantime, the checks being distributed now represent only the Portfolio Advisors and Hamilton Lane portions. Members should not assume the current payment is the final word — but they also should not count on a specific additional amount from the remaining defendants.
Key Dates and Court Milestones in the PSERS Settlement
The timeline of this case helps illustrate how long pension litigation can take. PSERS posted its notice of class certification and preliminary approval of the Portfolio Advisors and Hamilton Lane settlements on June 5, 2025. The Final Approval Hearing was held on September 11, 2025, at 10:00 a.m.
Via Zoom. Following court approval, the settlement administrator processed distributions, and by February 27, 2026, PSERS confirmed that members were receiving their checks. From the initial error in December 2020 to checks in the mail in early 2026, the process spanned more than five years — a reminder that even relatively straightforward settlement cases involve lengthy legal and administrative timelines.
What This Case Means for Pension Fund Oversight Going Forward
The PSERS shared-risk debacle exposed how a single miscalculation by an outside consultant can cascade into tens of millions of dollars in financial harm to working people. It has prompted broader conversations about accountability in pension fund management — not just among fiduciaries and board members, but among the outside consultants and advisors that pension systems rely on. The SEC’s enforcement action against Aon signals that regulators are willing to hold investment advisors accountable for misrepresentations to public pension funds.
For PSERS members specifically, the resolution of the Aon and Aksia litigation will be worth watching. Those outcomes could determine whether members recover a larger share of the $80-plus million in excess contributions they were forced to pay. Any future settlement notices will be posted on the PSERS newsroom page and the official settlement website.
Frequently Asked Questions
Do I need to file a claim to receive money from the PSERS settlement?
No. Eligible class members receive checks automatically based on PSERS records. There is no claim form to submit.
Who is eligible for the PSERS Shared Risk Class Action Settlement?
PSERS members in Membership Classes T-E, T-F, T-G, or T-H who paid increased mandatory retirement contributions at any time between July 1, 2021, and June 30, 2024.
How much will my settlement check be?
Individual amounts vary based on how much you overpaid in contributions during the affected period. The total settlement fund from Portfolio Advisors and Hamilton Lane is $15,250,000, divided among all eligible members.
Is this the only money I will receive?
Not necessarily. The litigation against Aon and Aksia is still ongoing. If those cases result in settlements or verdicts, additional distributions to class members are possible.
What is the difference between the class action settlement and the PSERS board’s $7 million settlement with Aon?
The class action was filed by individual PSERS members and the settlements go directly to those members. The board’s $7 million settlement with Aon was a separate lawsuit by PSERS itself, and that money went to the retirement system — not to individual members as direct payments.
Who should I contact if I have questions about my settlement check?
Contact the settlement administratorsettlement administrator[contact via the official settlement website] or visit [pserssharedriskclassaction.com](https://pserssharedriskclassaction.com/).
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