A new Louisiana law requires consultants and money managers to disclose their conflicts of interests and non-pension fund sources of revenue to the state's retirement systems beginning July 1, according to state Rep. Matthew "Pete" Schneider, sponsor of the bill. Consultants and money managers will have to report the information to the systems semiannually, regardless of whether there is any payment to report. The penalty for failure to disclose is a payment to each system involved equaling the value of the revenue the firm failed to disclose, together with any damages caused by the failure. The penalty will be tripled for intentional failure to disclose.
The statute also permits the systems to divest their holdings in Iran, Libya, North Korea, Sudan and Syria without breaching fiduciary duty. It does not require divestment, leaving discretion to the systems.
The statewide systems include the $11.99 billion Louisiana Teachers' Retirement System, $6.4 billion Louisiana State Employees' Retirement System, $1.6 billion Louisiana Parochial Employees' Retirement System, $1.4 billion Louisiana School Employees Retirement System, $1.2 billion Louisiana Municipal Police Employees Retirement System and $1 billion Louisiana Sheriffs Pension and Relief Fund.
Gov. Kathleen Babineaux Blanco signed the bill May 27.