Mary Pettersen, director of the $4.7 billion State Teachers' Retirement Fund of Indiana, has resigned at Gov. Frank O'Bannon's request.
Bill Christopher, executive director of the State Student Assistance Commission, has been asked to serve as interim director.
Ms. Petterson was asked to resign because the governor was upset over how funds were transferred in 1996 to pay benefits. According to the governor's office, it wasn't until four weeks ago that he was told the appropriations in the 1995 state budget were not enough to pay teachers' pensions in 1996 and 1997 fiscal years.
$2.6 billion to international
The $50.4 billion Washington State Investment Board chose seven managers to run a total of $2.6 billion in international equities, said Jim Parker, executive director.
Delaware International Advisors, Putnam and Dresdner RCM will manage $600 million each. Artisan Partners, Pyrford International, Nicholas-Applegate and TT International will manage $200 million apiece.
Each manager has license to invest up to 10%of its portfolio in emerging markets. The board's benchmark is the MSCI ACWI ex-U.S. index.
Funding will come from a $1.1 billion reduction in State Street Global Advisors' $3.6 billion international index portfolio, and from existing managers whose contracts expire June 30.
Fund moves to euro bonds
Stichting Pensioenfonds Wolters Kluwer Nederland plans to convert its 600 million guilder ($294 million) Dutch bond portfolio into eurozone bonds later this year. The portfolio is internally managed but the fund might use both external and internal managers when it converts the portfolio, said Jaap van Wieringan, head of investments.
Oklahoma readies RFPs
The $4.6 billion Oklahoma Public Employees' Retirement System is expected to issue RFPs within the next two weeks for one small-cap value U.S. equity manager to run $200 million and core EAFE manager to run $360 million.
The contracts of incumbents David L. Babson, a small-cap value manager, and Scudder Kemper, a core EAFE manager, are expiring. Both are expected to rebid.
Next, the fund will search for its first enhanced index fund and high-yield bond managers.
USA proposal criticized
It's not quite good enough.
That's what employer groups are saying about President Clinton's proposal to bolster retirement savings among low- and middle-income workers through new Universal Savings Accounts. Mr. Clinton's proposal would let employees direct a portion of the government match into employer-sponsored retirement plans.
But David Wray, president of the Profit Sharing/401(k) Council of America, calls the proposal "not cost effective" because it calls for offering subsidies and government matches to most people already participating in employer-sponsored retirement programs.
Brian H. Graff, executive director of the American Society of Pension Actuaries, worries the program could cannibalize employer-sponsored retirement programs.
PBGC gets Venture plan
The PBGC is taking over the pension plan of the bankrupt discount department store chain Venture Stores. The company's pension plan has assets of about $17.4 million and liabilities of $19.1 million. Venture shut down its pension plan, which covers 4,300 workers and pensioners, Aug. 30.
ESOP to become 401(k)
Primesco/Mutual Savings Insurance is converting its $46 million ESOP into a 401(k) plan, and hired Principal Financial Group to be administrator, record keeper, trustee and custodian, said Frank Thomas, finance committee chairman. The nine-option plan is to begin May 1.
2 seek lead roles
The $300 million New Orleans Employees' Retirement System has joined the $665 million Jacksonville Police and Fire Pension Fund in seeking lead plaintiff status in a class-action lawsuit against Pediatrix Medical Group.
The lawsuit has been expanded to include all persons who purchased Pediatrix common stock between April 28, 1998, and April 1, 1999.
Attorneys general in Florida, Colorado and Arizona have been investigating Pediatrix's billing practices, including its Medicare billing.
Its stock has lost 45%of its market value since April 1.
LA County taps Fidelity
The $25 billion Los Angeles County Employees Retirement Association hired Fidelity Management Trust to run $300 million in European equities, said Lisa Mazzocco, senior investment officer.
Fund agrees to military credit
Under an agreement with the DOL, the Electrical Contractors Association and Local 134 IBEW Joint Pension Trust of Chicago has agreed to pay nearly $900,000 to 194 plan participants and beneficiaries who had not received credit for their military service when the fund calculated their pensions.
The plan is still liable for more than $1 million in back pensions to retired veterans.
Deluxe hires Northern
Deluxe Corp. hired Northern Trust as master trustee for its $2 billion defined benefit plan, replacing U.S. Bank, and record keeper and trustee for its $50 million 401(k) plan, replacing Putnam, said LeaAnn Idzorek, project consultant. Jeffrey Slocum & Associates assisted.
Archdiocese hires SSgA
The $500 million endowment of the Archdiocese of Los Angeles hired State Street Global Advisors as its first index fund manager, said CFO Jose Debasa. SSgA will run $68 million in a Russell 1000 value index. Asset Strategy recommended the switch.
San Jose picks Brandywine
The $1 billion San Jose Federated City Employees' Retirement System hired Brandywine Asset Management to run a $35 million small-cap value U.S. equity portfolio, said Edward Overton, administrator. Callan assisted.
Asset units merge
ABN AMRO Asset Management (USA) and LaSalle Banks Trust and Asset Management have been combined, according to a memo by Harry Tempest, chairman of ABN AMRO's North American operations. ABN AMRO Asset Management has about $8.5 billion under management, and LaSalle runs close to the same amount; both are owned by the Dutch bank, ABN AMRO.