Read this Pensions & Investments article about the corruption and unbridled power of external investment managers:
The latest chapter in the whistle-blower complaint by Jeffrey Baker against the San Diego County Employees’ Retirement Association raises questions about the amount of control a pension fund relinquishes when it outsources all or some of its investment staff functions.
The control issue surfaced during a San Diego County Civil Service Commission hearing to decide whether Mr. Baker, formerly an investment officer at the $8.1 billion pension fund, should get his job back and if he is entitled to monetary damages. Commissioner Francesca Krauel, who presided at the hearing late last month, is expected to report back to the full commission, which is expected to make a determination at its March 7 meeting.
Mr. Baker also has a complaint pending before the California Department of Labor, which is investigating whether he was fired in retaliation for allegedly sounding the alarm that the pension fund had taken on too much risk in violation of its investment policy.
Seriously – go read it all.
You know who the focus of all that is? The guy behind the entire nightmare in San Diego?
None other than Brian White – the latest top pick to head Kentucky Retirement Systems.