Employee Benefits-More On Public Retirement Fund Scandals

According to an article in a Wall Street Journal blog (the article is here), the Los Angeles City Employees’ Retirement System (“LACERS”), which has about $9 billion in assets, has joined a number of other public pension funds in taking steps to improve the disclosures made in connection with how it does business, in the wake of the pay-to-play scandal at New York State Common Retirement Fund (“CRF”).

Unlike the CRF, LACERS did not ban intermediaries, that is, persons from whom the right to manage a portion of LACERS assets may be obtained (see my blog entry of April 23, 2009). However, LACERS has approved a policy, which requires that firms that wish to manage LACERS assets, or to otherwise do business with LACERS, disclose the identity of third-party marketers or individuals that they use to market their funds.