Friday, November 27, 2009
Some public pension funds waste money on "parasitic" middlemen: How about CALPERS?
The “Deals & Deal makers” page C3 of the Wall Street Journal “Money & Investing” section today (Black Friday, Nov. 27) has an interesting “pension tsunami” story about how pension funds of major public sector employers may be diverting resources to manipulative but “undeserving” middlemen (call them “parasites”).
The story concerns CALPERS, the California Public Employees’ Retirement System, which reportedly continued using the services of two investment counselor firms (sort of the Vernon Albright – “My Little Margie” kind) after their contracts had expired.
The story is by Craig Karmin, is titled “For Calpers, a blunder on pay”, and has link here.
Such practices could gradually put even more strain on PBGC, eventually, and become a political issue.
Attribution link for p.d. Wikipedia picture of Sacramento waterfront. My last transit of the area was in Nov. 1995.