Local 363 Pension Fund "E,” New York, hired First Actuarial Consulting Team as the $27 million fund’s consulting actuary. The plan terminated Watson Wyatt after the firm asked it to sign a formal letter accepting the liability limits and sought indemnification from lawsuits over its work. "We advise our clients strongly against accepting such a retaining letter,” said Owen Rumelt, a partner in the New York law firm of Levy, Ratner & Behroozi P.C., representing the pension fund.
Dewey Dennis, founder of First Actuarial, quit as a consulting actuary at Watson Wyatt over concerns about the firm’s policy. Mr. Dennis said he expects an unidentified Watson Wyatt colleague who shares his concerns to join him in the new firm.
Officials at Watson Wyatt did not return calls seeking comment by press time.
