Luzerne County Retirement System, Wilkes-Barre, Pa., will search for new money managers for the $142 million pension plan, said Steve Flood, county controller and a member of the retirement board. The plans 20 money managers have been terminated amid allegations that about half of them were hired because they made political contributions to Luzerne County commissioners, Mr. Flood said.
Merrill Lynch, the plans new consultant, is leading the search, Mr. Flood said. Plan officials have given the terminated managers 30 days to "get their affairs in order, he said, and several managers are expected to be hired by then to take over the management of the funds assets. Further details were not available by press time.
Mr. Flood has begun an investigation and expects to hold hearings in October into how the pension fund had been run with previous consultant ASCO Financial Group. Don Williamson, ASCO president, didnt return calls seeking comment by press time.