Massachusetts Pension Reserves Investment Management Board, Boston, hired KPMG as the $25 billion systems auditor, effective July 1. KPMG replaces PricewaterhouseCoopers, which was the plans auditor for the past three years. KPMG was selected for its depth of resources and lower fees, said Robert Brousseau, PRIM board member. Deloitte & Touche was the other finalist.
Separately, the board on Thursday expressed opposition to Gov. Mitt Romneys proposal to contribute $180 million of the states surplus real estate to the pension plan, in lieu of cash. Tim Cahill, state treasurer and board chairman, said the state should handle the required real estate transaction, which would be too expensive and costly for the $25 billion systems staff to implement. The proceeds of the sale would be contributed to the system.
Peter Schwarzenbach, undersecretary to Eric Kriss, administration and finance secretary in the Romney administration, said the state is not set up to handle the real estate deals, but that the state would work with the board and the treasurers office to devise a plan to sell the properties.