Fort Lauderdale (Fla.) General Employees’ Retirement System could search for new managers by the end of the year if the city issues pension obligation bonds to improve the funding of its two pension plans, confirmed David Desmond, pension administrator.
The city’s commission will vote on the bond proposal Aug. 21, according to city spokesman Chaz Adams. In July, city staff proposed issuing $297 million in pension obligation bonds, the proceeds of which would be divided between the general employees’ system and the Police & Fire Retirement System.
Dahab Associates, investment consultant for the general employees’ system, will attend the board’s August meeting to discuss how the fund might allocate its share of the bond proceeds, expected to be about $130 million, according to Mr. Desmond.
Mr. Desmond said the new money could be distributed among existing managers if the system does not issue RFPs.
The Police & Fire Retirement System would receive about $170 million under the bond proposal, according to Fred Nesbitt, the system’s director of public information.
Mr. Nesbitt said the system would probably follow its current asset allocation, but with the additional money it could add a new asset class under a category such as alternatives investments. CapTrust Advisors is the system’s investment consultant.
As of Sept. 30, the general employees’ system had $305 million in assets and $486 million in obligations, according to Mr. Desmond.
The Police & Fire Retirement System had $453 million in assets and $672 million in obligations as of Dec. 31, according to the system’s most recent actuarial report.
A phone call to Lee Feldman, Fort Lauderdale city manager, was not returned by press time.