Pennsylvania Auditor General Robert P. Casey Jr. today issued subpoenas to the chairmen of the Pennsylvania Public School Employees Retirement System and the Pennsylvania State Employees Retirement System, both in Harrisburg, seeking documents for audits of the funds investment operations. "Earlier this week, the funds refused once again to provide the Department of the Auditor General with crucial documents related to their expenditure of over $250 million a year for external investment advisers and consultants, Mr. Casey said in a statement.
Evelyn Tatkovski, press secretary for the $38.3 billion school employees system, said "were disappointed that the auditor general decided to issue the subpoena to PSERS. The fund plans to give the auditor general all the documents from its own audit, Ms. Tatkovski said. "We dont believe the auditor general has the authority to conduct this type of audit, she said.
Ms. Tatkovski also said the pension funds would be forced to pay for the auditor generals consultant and audit, and that "we have a fiduciary duty to our members to control costs. We wont give him a blank check.
Sean Sanderson, spokesman for the $24.5 billion PennSERS, did not return calls seeking comment by press time.