Many Massachusetts public pension funds are holding off on changes with investments or money managers until next year because of a new law that took effect today.
The law requires all 106 public plans in the state (except the Massachusetts Port Authority Employees Retirement System and Massachusetts Bay Transportation Authority Retirement Fund) to expand their boards to five members by Jan. 7. Most systems now have three trustees.
Officials of the Brookline Retirement Board, the Chicopee Contributory Retirement System and the Hampden County Contributory Retirement System are among those that have put searches or manager hirings on hold until the funds can comply with the new law.
Public School Teachers' Pension and Retirement Fund of Chicago selected Merrill Lynch Citation as its broker for a pilot commission recapture program, said Michael Nehf, deputy executive director of the $7 billion fund. Merrill Lynch Citation will trade 15% of the total volume of transactions by the fund's domestic core equity managers and will rebate 62.5% of the commissions to the fund, said Mr. Nehf. The pilot program will be evaluated in six months, said Mr. Nehf.