Managing Public Plans in Turbulent Times

Managing Public Plans in Turbulent Times

Session Participants

Moderator:

Representative Steve Conway, Washington

Panelists:

Jack Eines, California State Teachers Retirement System
Marcia Richter, Los Angeles County Employees Retirement System
Marion Higa, State Auditor, Hawaii

NLPES co-sponsored this session with the Labor and Workforce Development Committee. The two representatives from pension systems discussed various issues relating to the management of employees' pension funds. They are concerned that public entities are facing contribution hikes. Ms. Richter commented that early retirement incentives don't work and suggested that offering retirees medical benefits might have more to do with getting people to retire. She advocated that pension plans should be able to set the contribution rate, and cautioned against "chasing returns" in investment policy. Her view of the mission of a public pension system is to pay the promised benefits. She also advocated a strong role for auditors in ensuring the accountability of fund management. Marion Higa summarized recent audits that her office has completed of the Hawaii State Employees Retirement System.