Consultants for PERF, TRF announce plan to merge

March 9, 2009
The General Assembly is still contemplating whether to approve a merger between the $11.2 billion Indiana Public Employees' Retirement Fund and the $6.9 billion Indiana State Teachers' Retirement Fund. The state's two largest public pensions have lost a combined $8 billion over the last 15 months as the stock market crashed.

Whether or not they're consolidated, the pensions are going to be touched by a merger. Their primary financial consultants are getting together in a deal announced Feb. 17.

PERF leans heavily on investment advice from New York-based Mercer LLC. Similarly, TRF relies on San Francisco-based Callan Associates Inc. The consultants help the pensions establish asset allocation targets and evaluate the performance of their professional money managers.

Terms of the deal in which Mercer will buy Callan were not disclosed. Mercer is a subsidiary of New York-based Marsh & McLennan Cos. Inc. According to Mercer spokesman Charles Salmans, the combined firm will have more than 18,000 employees, $2 trillion in U.S. assets under advisement, and $4.7 trillion under advisement across the globe. Salmans said Callan can't divulge details about how the acquisition will affect Indiana's pensions until after the deal closes around April 1.
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