PERF confusion

Your March 2 article "Indiana plotting pension merger" is confusing. I am not at all sure that a merger of these
two plans
is not a good idea, possibly just not under current investment management auspices.

The article states that the larger Public Employees Retirement Fund lost one-third of its value from peak, while the smaller
Teachers Retirement Fund lost one-quarter of its value, which is more in line with other public pension plans. And this is
without knowing the value of the very expensive alternative investments carried by PERF.

The Legislative Services Agency says pooling of assets will increase annual returns! Must be some sort of magic — how
about
increased losses? To top this off, [PERF Chief Investment Officer Shawn] Wischmeier admits that he does not know the value
of his alternative investments.

They have no place in a relatively small public pension plan. And PERF wants to get to 30-percent invested! From bonds to
this? All of this consolidation to save about 0.05 percent of invested assets in one-time fees and 0.007 percent in annual
fees.

I like saving, but go figure. And Bill Styring complaining about the plan’s investment fees of 0.5 percent of invested assets
is interesting, especially when PERF is paying a fee for those alternatives. Styring brags that he will work for $1 and manage
to lose less money. I will work for 50 cents and save even more by investing the $26 billion in CDs or bank savings accounts!

___

Larry Davis

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