CHAPTER
THE SEPARATION OF FUND AND STATE:
FULFILLING THE PROMISE OF THE FUTURE
Robert J. Hermann
~， perff>rmance of public pension plans will suffer if left in the hands of
~.，Micians and government administrators. Bureaucrats live from budget
， !，udget year， politicians live from election to election， but the pension
i\"{mfise must be fulfilled for many years into the future--long beyond the
，~ v :rod political concerns of current government officials. 1 believe th/.s i，
.~ compelling argument for the separation of public pension funds from the
，~-nt bureaucrats who traditionally have managed them.
-xperience of the Los Angeles County Employees Retirement Associatl，，~
Lk) demonstrates that independence can greatly increase investment
that benefit both retirees and government， while political control ru;w
dy to increased taxes. Our example may encourage other public tim，Is to
themselves from political control. No matter which part of the United
government official represents or which level--city， county or state--h~.
{overns， bureaucrets share simila~ characteristics. When it comes to public
funds， many still hck the cotmlge to make tough choices and decisions，
making pension assets vulnerable to raids. Governments conveniently
hat once assets are transferred to the pension fund， they are no longer
hut trust， funds.
erous state and local pension funds throughout America are still manipu-
politicians and bureaucrats. One way governments try to keep control of
)ension funds and their administration is through the ex officio board
， usually the treasurer. Most public pension funds operate as a separate
~ent within the county， state or city treasurer s office， with employees
g to the ex officio member. Governments need to recognize and respect
}lic pension fund trustees are fiduciaries whose sole purpose is to serve the
ticip rots anti thmr bure ~t trots shot d refrain
.\" t beneficiaries. Politicians and { \" t s \" \"
)]ecting fiduciaries to political or legislative restraints that could under-
-qr objectivity.
politicians and bureaucrats， thinking that government pension fimds are
|
内容加载中，请稍后...
商品评论（0条）