HARRISBURG, Pa. (HedgeWorld.com)–After more than two years of squabbling, the Pennsylvania Auditor General’s office has won permission to conduct performance audits on the Pennsylvania State Employees’ Retirement System.
The pension fund case went all the way to the Commonwealth Court of Pennsylvania, which in a 6-to-1 ruling said that Auditor General Robert P. Casey Jr. may acquire documents from the US$25 billion pension fund in order to complete a full audit.
The pension fund has invested in funds of funds since 2002 and came under fire from the local press earlier this year for the fees it pays to hedge funds and for the way fees are disclosed.
Under the court ruling, the states other largest pension fund, the Public School Employees’ Retirement System, also may be audited.
“Taxpayers certainly have the right to know how these funds spend $250 million a year on outside investment advisors and how they select the firms that help manage $73 billion in public employees’ retirement assets,” said Mr. Casey in a statement.
Contact Bob Keane with questions or comments at: [email protected]