Minnesota State Retirement System, St. Paul, has some "weaknesses" in its administration of the state's $2.8 billion deferred compensation plan, according to a special review by the state legislative auditor's office. While the auditor "did not find evidence of financial wrongdoing" by retirement system employees, retirement system officials didn't have "adequate controls" over the plan's $11.5 million administrative account, which includes plan fees, according to the report, issued Wednesday.
The retirement system took over education services and enrollment in 2004 through a new in-house call center, and most of the weak points cited in the report stem from that transition period, said David Bergstrom, executive director of the state's $10 billion retirement system. The plan has saved about $1 million by moving the services in-house, he said. Great-West Retirement Services, the deferred compensation plan record keeper, previously managed education and enrollment as well.
Mr. Bergstrom said plan officials are implementing the auditor's recommendations and most are already in place.