Previous Story
Wilshire’s contract now with AG; hiring of money managers on hold
|
Posted on Feb 08 2012
By Moneth Deposa
Reporter
Reporter
The contract of NMI Retirement Fund consultant Wilshire Associates is now with the Office of the Attorney General, according to board chair Sixto K. Igisomar yesterday.
It is expected that once the signatures of all parties involved are in, the consultant’s service to the Fund will immediately begin.
Wilshire agreed to return to the embattled pension agency following the repeal of the Beneficiaries Derivative Act that was enacted in September last year. The firm had terminated its contract with the Fund due to increased exposure to liability as a result of the Act’s passage.
Under Wilshire’s new contract, it will be paid a lesser fee compared to its last arrangement. From $195,000 a year, it will now be paid $165,000 as a result of the declining asset of the pension program.
As for the contract of the actuarial consultant, Igisomar disclosed that it is now under review by Fund administrator Richard Villagomez, who will soon make a formal presentation to the board. Buck Consultant’s proposal, he said, will also be reviewed by the board. He declined to divulge the fees and other details of the new contract pending approval by the full board.
Meantime, the hiring of money managers is on hold until further notice or as soon as Wilshire is on board, Igisomar said. Like Wilshire, the Fund’s money managers also terminated their contracts last year in the wake of the passage of the derivative law.
According to Villagomez yesterday, the Fund’s investment portfolio had an estimated and unaudited market value of $255,746,376 as of Jan. 31. Of this amount, $105 million is in the certificate of deposit account registry service, or CDARS program, while $145 million is in mutual funds. Wilshire is expected to come up with a new plan on how to best invest the Fund’s portfolio once it officially comes aboard.
