Members of the board of Pennsylvania’s $73 billion school pension fund won’t be required to sign nondisclosure agreements before hearing on Monday the long-awaited findings of an internal investigation into the mammoth plan.
The Public School Employees’ Retirement System is still asking the board to sign the secrecy pacts but is not insisting upon it, the plan’s spokesperson says. Her statement clarified a previous controversial email from the board’s chairman, who asked members to sign NDAs without saying they had the option to refuse.
A law firm is to unveil the results of its investigation at a closed-door session for the PSERS board Monday morning. But the board has yet to decide whether, how soon and how completely those findings will be made public after the meeting.
Author(s): ANGELA COULOUMBIS, JOSEPH N. DISTEFANO AND CRAIG R. MCCOY
Leaders of Pennsylvania’s beleaguered teachers’ pension fund are requesting that board members sign oaths of secrecy before receiving a critical update on the botched investment calculation scandal that has led to multiple federal investigations.
On Thursday morning, the chairman of the Pennsylvania Public School Employees’ Retirement System board told members in an email that they must sign a yet-to-be-drafted non-disclosure agreement to participate in a closed-door meeting later this month.
The meeting, scheduled for Jan. 31, is pivotal: Board members are poised to be presented with the findings of a taxpayer-funded inquiry into an investment calculation mistake in late 2020 that wrongly spared teachers a potential hike in their pension payments, leaving taxpayers to make up the difference over time. The calculation was later fixed, and teacher payments increased.
Now The Inquirer and Spotlight PA have obtained new internal fund documents that shed light on that consequential mistake. The material traces the error to “data corruption” in just one month — April 2015 — over the near-decade-long period reviewed for the calculation.
The error was small. It falsely boosted the $64 billion PSERS fund’s performance by only about a third of a percentage point over a financial quarter. Even so, it was just enough to wrongly lift the fund’s financial returns over a key state-mandated hurdle used to gauge performance.
The documents reveal that a fund consultant, Aon, blamed the mistake on its clerical staff for inputting bad data. The material also shows that even though the fund hired a consultant, the ACA Compliance Group, to check the calculations, the consultant made only limited checks, and skipped over the month with the critical errors.
Author(s): Joseph N. DiStefano, Craig R. McCoy, Angela Couloumbis