Bonus problem is back on the front burner for many pension systems once again!

From John Curry, April 19, 2010

Public funds wrestling with bonus conundrum

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“You could put a blind monkey in the investment seat and he would have done better,” said Mr. Miller.

Source: Pensions & Investments
http://www.pionline.com/apps/pbcs.dll/article?AID=/20100419/PRINTSUB/304199972&fromRSS=true&template=printart
Date: April 19, 2010

Public pension plans across the U.S. are revamping compensation policies that allowed bonuses for investment staffers and other top officials while the funds were losing hundreds of billions of dollars during the financial crisis.

In the aftermath of the crisis, state officials are dealing with increases in unfunded liabilities for their plans amid budget crises that have resulted in layoffs, program cuts and reductions in cost-of-living increases for state retirees.

Against that backdrop, “bonuses“ has become a dirty word.

“In recession years ... it's very difficult to give bonuses without people being up in arms,'' said Girard Miller, consultant at PFM Asset Management LLC in Philadelphia.

The issue has played to front-page newspaper headlines in Missouri, where Gov. Jay Nixon has called pension staff bonuses “unconscionable” and has led efforts to terminate the state's bonus program for pension system employees.

Read complete article here.