CalPers Middlemen Paid Millions:

[amborin]

"Private investment funds paid more than $125 million to scores of intermediaries who helped them win business with the California Public Employees' Retirement System, new documents show, prompting calls for stronger oversight of those who solicit public pension money.

The intermediaries, or placement agents, include three former CalPERS board members -- one of them William D. Crist, a longtime board president -- who lobbied the pension fund on behalf of an investment firm seeking a share of CalPERS' $205 billion in assets.

Pension experts say the disclosures are troubling, as lobbying by former board members could put pressure on CalPERS to put money with investment firms that charge excessive fees or that don't offer the best returns.
"The fact that people are being lobbied by people who have relations with current board members, even though they are former board members, is totally inappropriate," said Dave Elder, a former assemblyman from Long Beach who monitors CalPERS for public employee unions.

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"These are serious issues, and CalPERS is committed to reviewing them fully and fairly," said Philip Khinda, an attorney with Steptoe & Johnson. "Among other things, we're investigating whether the system was made to overpay or was misled."

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Among the highlights:

* Former CalPERS board members Matt Fong and Crist were identified for the first time as pitchmen for investment funds. Fong served on the CalPERS board in his role as state Treasurer. Crist -- a retired economics professor at Cal State Stanislaus in Turlock -- was elected to the CalPERS board by state employees."

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http://www.latimes.com/business/la-fi-calpers-crist15-2010jan15,0,5939713.story

[frebrd]

1. Yikes! That's my retirement system. eom

:(