Hamant To Curtis; Frank Russell Recommendation For Investment Staff Increase
From: Nancy Hamant
Sent: Sunday, November 20, 2005
I want to comment on the November recommendation by STRS and the Frank Russell Investment Group (STRS contractor who provided some of the"perks" that have been identified in the recent ethics charges brought against Herb Dyer and Hazel Sidaway) that to enable STRS to surpass their target investment goals, more Investment staff need to be hired (perhaps as many as 25) need to be added to STRS staff. Frank Russell Groups' recommendations should be considered "tainted" as recommending salary increases and adding more STRS staff is in itself tantamount to providing STRS perks. Frank Russell's recommendations should be given no credence until all Ethics charges and the pending trial are finalized and Frank Russell is totally cleared of any "wrongdoing".
Warren County recognizes that it is urgent that the STRS staff perform to the peak of their performance. However, Warren County is justly cautious about a "sweeping" addition of Investment staff at a time when the STRS unfunded liability is spiraling out of control. Also, Warren County is adamantly against "wholesale" increases in bonuses and salaries for the same reason, as well as the fact that the 2002 Buck Report on staff compensation stated that "an entitlement" mentality was pervasive among STRS staff. Never again should such an "entitlement" mentality be permitted to drive STRS staff actions.
In fact, the Executive Director (Damon Asbury) and the STRS Board members have a legal fiduciary responsibility to ensure that such an "entitlement" mentality is ended.
The pending (December 2005) AON report on staff compensation needs to be carefully compared to the Buck Study (which should serve as a benchmark for comparison) prior to any increase in STRS staff compensation or any increase in adding staff.
Nancy B. Hamant,
Legislative Chair WCRTA and CORE
Sent: Sunday, November 20, 2005
I want to comment on the November recommendation by STRS and the Frank Russell Investment Group (STRS contractor who provided some of the"perks" that have been identified in the recent ethics charges brought against Herb Dyer and Hazel Sidaway) that to enable STRS to surpass their target investment goals, more Investment staff need to be hired (perhaps as many as 25) need to be added to STRS staff. Frank Russell Groups' recommendations should be considered "tainted" as recommending salary increases and adding more STRS staff is in itself tantamount to providing STRS perks. Frank Russell's recommendations should be given no credence until all Ethics charges and the pending trial are finalized and Frank Russell is totally cleared of any "wrongdoing".
Warren County recognizes that it is urgent that the STRS staff perform to the peak of their performance. However, Warren County is justly cautious about a "sweeping" addition of Investment staff at a time when the STRS unfunded liability is spiraling out of control. Also, Warren County is adamantly against "wholesale" increases in bonuses and salaries for the same reason, as well as the fact that the 2002 Buck Report on staff compensation stated that "an entitlement" mentality was pervasive among STRS staff. Never again should such an "entitlement" mentality be permitted to drive STRS staff actions.
In fact, the Executive Director (Damon Asbury) and the STRS Board members have a legal fiduciary responsibility to ensure that such an "entitlement" mentality is ended.
The pending (December 2005) AON report on staff compensation needs to be carefully compared to the Buck Study (which should serve as a benchmark for comparison) prior to any increase in STRS staff compensation or any increase in adding staff.
Nancy B. Hamant,
Legislative Chair WCRTA and CORE
posted by Kathie Bracy at 3:31 PM
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