State Treasurer Curtis Loftis wants to shed some light on how funds are allocated within the state’s $27 billion pension. He testified Thursday before a special Senate subcommittee, highlighting the disproportionately large fees the retirement system’s Investment Commission shells out for the return on investment. “How many people know what goes on in a 27 billion dollar investment fund,” he asked.
$427.5 million went to fees in 2013. The fund’s returns are in the bottom 20 percent in the country. “We’ve had three audits, and they weren’t very good,” Loftis said, citing concerns with under-reported fees.
Loftis, who holds a seat on the Investment Commission, may again appear before the committee later this month to talk about the state of the pension. Sen. Joel Lourie, D-Columbia, said senators will focus on two issues—how fees for the pension are calculated and how the value of investments is being audited.
Check out this presentation by Loftis on the state of the pension.