At Deadline

The $29 billion Colorado Public Employees Retirement System terminated its merger with the $2.4 billion Denver Public Schools Retirement System.

The board for the Colorado system made the move "in the best interest of Colorado PERA members," according to a PERA statement, which also noted new legislation would be required to resume the merger. Under the old legislation, either party could terminate before July 1, said Bob Scott, executive director of the Denver schools plan. Mr. Scott said he thought PERA killed the deal because the merger process as detailed in the 2003 legislation was too costly. He noted work has begun on a new merger bill.

Bruce O. Kallos, executive director of the $1.1 billion Arlington County (Va.) Employees' Retirement System, was put on indefinite administrative leave with pay based on an audit of his expense reports for the last 12 months. Mr. Kallos could not be reached for comment.

Boeing picks 2

Boeing hired Northern Trust Global Advisors and Progress Investment Management to run the $36 billion pension fund's manager of emerging managers program. Funding for the program will begin with a $300 million allocation before Sept. 30. Officials hadn't decided how the money will be divided between the two firms.

Congress must clarify that cash balance and other hybrid pension plans do not discriminate against older workers, James M. Delaplane Jr., partner at the law firm of Davis and Harman and former vice president of retirement policy at the American Benefits Council, testified July 7 before a House panel.

Mr. Delaplane warned that without congressional action, employers might be forced to shut down their cash balance plans. House Education and Workforce Committee Chairman John Boehner, R-Ohio, who presided over the hearing, said lawmakers need to make sure "cash balance plans aren't forced into extinction at the expense of the interests of worker retirement security."

Cambridgeshire County Council Pension Fund hired Schroder to run £85 million ($158 million) in a real estate fund of funds, according to the firm. The scheme increased its real estate allocation to 10% from 6%, said Julian Samways, Schroder spokesman. The manager already handles £340 million in a multiasset mandate for the scheme, of which £25 million has been transferred to the new property fund. John Hopwood, group accountant for Cambridgeshire, could not be reached by press time. The plan has £1.5 billion in assets, according to the International Pension Funds and their Advisors 2003.

Eve Guernsey was named chief executive officer of the Americas at J.P. Morgan Fleming Asset Management, a new position. She will be responsible for business strategy, day-to-day management and profitability for all the J.P. Morgan Fleming businesses in the Americas, including the recently acquired Banc One Investment Management Group, the mutual funds business and J.P. Morgan Invest. Ms. Guernsey will remain CEO of J.P. Morgan Fleming's institutional business in the Americas.

The $285 million Plumbers Pension Fund, Local 290, hired Western Asset to run $25 million in active domestic core fixed income, according to a plan official. Funding came from rebalancing. Also, the plan rehired active domestic core fixed-income manager McMorgan & Co. to handle $38 million. Trustees had considered hiring core-plus managers. Wurts & Associates assisted.

University of Dayton committed $7.5 million each to Heitman Value Partners, a real estate limited partnership, and to AEW Value Investors, a REIT, said Delanie Moler, investment officer. Funding will come from rebalancing domestic equities, Ms. Moler said. The $450 million long-term investment pool, which includes a $301 million endowment, added a 6% real estate target following an asset allocation study completed earlier this year, she said.

The new allocation is 73% equity, 15% fixed income, 6% private equity-venture capital and 6% real estate. The previous allocation was 80% equity, 15% fixed income, 4% private equity-venture capital and 1% cash. DeMarche Associates assisted.

Ochsner Clinic Foundation hired Merrill Lynch as bundled provider of its $130 million 401(k)/profit-sharing plan, said Tracy Landry, senior HR analyst. Merrill Lynch replaced Putnam Investments, Mr. Landry said. Plan officials were concerned about the performance of the Putnam funds offered as investment options, as well as "everything going on" following market-timing allegations against the firm last fall, he said. The plan offers 19 investment options, up from 15. No consultant was used.

"We're disappointed about their decision but hope to have the opportunity to manage investments for them again in the future," said Laura McNamara, Putnam spokeswoman.

Ohio State Teachers Retirement System expects its assets to grow by $3 billion during the fiscal year that began July 1, to $57 billion, according to the system's 2004-2005 investment plan. The system expects below-average returns from fixed income, above-average returns from domestic and international stocks and average returns from real estate.

Ashworth will pay $15.25 million and institute new corporate governance practices in a settlement of a class-action lawsuit led by the $4.5 billion New Hampshire Retirement System.

The complaint, filed in 1999, alleged that Ashworth misled investors about the value of its stock between September 1997 and July 1998. The system owned 63,000 shares of Ashworth stock during that period, according to Elizabeth Fox, attorney with Berger & Montague, outside counsel for the class action.

Leon Shahinian was promoted to senior investment officer for the $20 billion alternative investment management program of the $165.1 billion California Public Employees' Retirement System, said Brad Pacheco, spokesman. He replaces Rick Hayes, who became a managing partner at Oak Hill Capital Management.