How many consultants do pensions really need? It’s a pretty simple problem: Pensions are underfunded and are dependent on unrealistic future returns. That’s not stopping the independent reviews. This from the Boston Globe:
The pension fund has been in a period of upheaval since December 2013, when it was revealed that it had lost $25 million in a bankrupt hedge fund whose troubles it had failed to disclose for more than two years.
Since then, Governor Charlie Baker has named three new “management” trustees to the fund’s board and has signed a new public records law that requires the pension fund to follow the same rules as other retirement funds for public workers.
Michael Mulhern, the pension fund’s executive director, stepped down in August and has not yet been replaced. The Baker administration is pressing the T pension fund to move investment of its assets to the larger state pension fund.
The new Pioneer report looks closely at how three Louisiana pension funds reacted when they, too, lost money in the same bankrupt hedge fund, run by Fletcher Asset Management. The Louisiana pensions disclosed in 2011 that they had been unable to withdraw money from the fund, prompting an investigation of Fletcher by federal securities regulators.