The Louisiana State Police Retirement System's investment return of 9.1% over 10 years exceeded the current assumed rate of 7.5%, according to a report from Louisiana's legislative auditor. However, the $340 million pension plan's large-cap equity, small-cap equity and fixed income underperformed over that period, according to the report, which recommended that fund officials take "appropriate corrective action" to address performance in those classes. The report did not include performance figures.
The report also said the board and staff members of the Baton Rouge-based fund may have created a conflict of interest by accepting meals furnished by investment managers and other financial professionals totaling $2,852 during 2004. Officials may have also violated the state's code of ethics by accepting gifts totaling about $290 over a 14-month period. Irwin L. Felps, executive director, acknowledged receipt of the gifts and said the retirement system is handling the situation within the guidelines of the ethics code.