Teamsters Pension Trustees Sued Over Private Equity Investments

A pension fund covering New York Teamsters overinvested in private equity and other risky assets in an attempt to chase an unreasonable rate of return set by the plan’s actuary, according to a proposed class action complaint filed in the U.S. District Court for the Southern District of New York.

The Employee Retirement Income Security Act lawsuit, filed Wednesday by plan participant Robert Carlisle, targets the trustees of the American Federation of New York State Teamsters Conference Pension and Retirement Fund, along with the fund’s actuary and investment consultant.

The defendants sunk plan assets in highly risky investments, including expensive ...